Correlation Between Dupont De and Apollo Bancorp

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

Diversification Opportunities for Dupont De and Apollo Bancorp

0.3

Correlation Coefficient

Dupont De  Apollo Bancorp

Weak diversification

The 3 months correlation between Dupont and Apollo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp 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 Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Dupont De i.e., Dupont De and Apollo Bancorp go up and down completely randomly.

Pair Corralation between Dupont De and Apollo Bancorp

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.98 times more return on investment than Apollo Bancorp. However, Dupont De is 1.98 times more volatile than Apollo Bancorp. It trades about 0.16 of its potential returns per unit of risk. Apollo Bancorp is currently generating about -0.03 per unit of risk. If you would invest  6,530  in Dupont De Nemours on April 25, 2025 and sell it today you would earn a total of  1,128  from holding Dupont De Nemours or generate 17.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Dupont De Nemours  vs.  Apollo Bancorp

Dupont De Nemours

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental indicators, Dupont De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Apollo Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Apollo Bancorp is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Dupont De and Apollo Bancorp

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

The idea behind Dupont De Nemours and Apollo Bancorp 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.