Correlation Between Dupont De and Hamat
Can any of the company-specific risk be diversified away by investing in both Dupont De and Hamat at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dupont De and Hamat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Hamat Group, you can compare the effects of market volatilities on Dupont De and Hamat and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dupont De with a short position of Hamat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Hamat.
Diversification Opportunities for Dupont De and Hamat
Very weak diversification
The 3 months correlation between Dupont and Hamat is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Hamat Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamat Group and Dupont De is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dupont De Nemours are associated (or correlated) with Hamat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamat Group has no effect on the direction of Dupont De i.e., Dupont De and Hamat go up and down completely randomly.
Pair Corralation between Dupont De and Hamat
Allowing for the 90-day total investment horizon Dupont De is expected to generate 11.13 times less return on investment than Hamat. But when comparing it to its historical volatility, Dupont De Nemours is 1.71 times less risky than Hamat. It trades about 0.01 of its potential returns per unit of risk. Hamat Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 99,620 in Hamat Group on January 18, 2024 and sell it today you would earn a total of 22,480 from holding Hamat Group or generate 22.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.11% |
| Values | Daily Returns |
Dupont De Nemours vs. Hamat Group
Performance |
| Timeline |
| Dupont De Nemours |
| Hamat Group |
Dupont De and Hamat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Hamat
The main advantage of trading using opposite Dupont De and Hamat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Hamat can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hamat will offset losses from the drop in Hamat's long position.| Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide | Dupont De vs. LyondellBasell Industries NV |
| Hamat vs. Arad | Hamat vs. Alony Hetz Properties | Hamat vs. Airport City | Hamat vs. Harel Insurance Investments |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |