Correlation Between Dupont De and Aurora Spine

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

Diversification Opportunities for Dupont De and Aurora Spine

0.17

Correlation Coefficient

Dupont De  Aurora Spine

Average diversification

The 3 months correlation between Dupont and Aurora is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Aurora Spine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Spine 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 Aurora Spine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Spine has no effect on the direction of Dupont De i.e., Dupont De and Aurora Spine go up and down completely randomly.

Pair Corralation between Dupont De and Aurora Spine

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.42 times more return on investment than Aurora Spine. However, Dupont De Nemours is 2.39 times less risky than Aurora Spine. It trades about 0.12 of its potential returns per unit of risk. Aurora Spine is currently generating about 0.01 per unit of risk. If you would invest  6,566  in Dupont De Nemours on May 1, 2025 and sell it today you would earn a total of  864.00  from holding Dupont De Nemours or generate 13.16% return on investment over 90 days.

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

Dupont De Nemours  vs.  Aurora Spine

Dupont De Nemours

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Dupont De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Aurora Spine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aurora Spine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Aurora Spine is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dupont De and Aurora Spine

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

The idea behind Dupont De Nemours and Aurora Spine 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.