Correlation Between Cellectar Biosciences and Dupont De

Can any of the company-specific risk be diversified away by investing in both Cellectar Biosciences and Dupont De 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 Cellectar Biosciences and Dupont De into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cellectar Biosciences and Dupont De Nemours, you can compare the effects of market volatilities on Cellectar Biosciences and Dupont De 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 Cellectar Biosciences with a short position of Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellectar Biosciences and Dupont De.

Diversification Opportunities for Cellectar Biosciences and Dupont De

-0.09

Correlation Coefficient

Cellectar Biosciences  Dupont De

Good diversification

The 3 months correlation between Cellectar and Dupont is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cellectar Biosciences and Dupont De Nemours in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dupont De Nemours and Cellectar Biosciences 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 Cellectar Biosciences are associated (or correlated) with Dupont De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dupont De Nemours has no effect on the direction of Cellectar Biosciences i.e., Cellectar Biosciences and Dupont De go up and down completely randomly.

Pair Corralation between Cellectar Biosciences and Dupont De

Given the investment horizon of 90 days Cellectar Biosciences is expected to under-perform the Dupont De. In addition to that, Cellectar Biosciences is 4.75 times more volatile than Dupont De Nemours. It trades about -0.04 of its total potential returns per unit of risk. Dupont De Nemours is currently generating about 0.14 per unit of volatility. If you would invest  6,953  in Dupont De Nemours on January 25, 2024 and sell it today you would earn a total of  406.00  from holding Dupont De Nemours or generate 5.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cellectar Biosciences  vs.  Dupont De Nemours

Cellectar Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cellectar Biosciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Dupont De Nemours

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Dupont De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cellectar Biosciences and Dupont De

The main advantage of trading using opposite Cellectar Biosciences and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellectar Biosciences position performs unexpectedly, Dupont De 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 Dupont De will offset losses from the drop in Dupont De's long position.

The idea behind Cellectar Biosciences and Dupont De Nemours pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.