Correlation Between Dupont De and ProFrac Holding

Can any of the company-specific risk be diversified away by investing in both Dupont De and ProFrac Holding 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 ProFrac Holding 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 ProFrac Holding Corp, you can compare the effects of market volatilities on Dupont De and ProFrac Holding 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 ProFrac Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and ProFrac Holding.

Diversification Opportunities for Dupont De and ProFrac Holding

-0.22

Correlation Coefficient

Dupont De  ProFrac Holding

Very good diversification

The 3 months correlation between Dupont and ProFrac is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and ProFrac Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProFrac Holding Corp 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 ProFrac Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProFrac Holding Corp has no effect on the direction of Dupont De i.e., Dupont De and ProFrac Holding go up and down completely randomly.

Pair Corralation between Dupont De and ProFrac Holding

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.21 times more return on investment than ProFrac Holding. However, Dupont De Nemours is 4.68 times less risky than ProFrac Holding. It trades about 0.09 of its potential returns per unit of risk. ProFrac Holding Corp is currently generating about -0.07 per unit of risk. If you would invest  6,751  in Dupont De Nemours on May 21, 2025 and sell it today you would earn a total of  568.00  from holding Dupont De Nemours or generate 8.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Dupont De Nemours  vs.  ProFrac Holding Corp

Dupont De Nemours

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Dupont De may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ProFrac Holding Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days ProFrac Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Dupont De and ProFrac Holding

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

The idea behind Dupont De Nemours and ProFrac Holding Corp 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.