Correlation Between Dupont De and Exchange Traded

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

Diversification Opportunities for Dupont De and Exchange Traded

0.31

Correlation Coefficient

Dupont De  Exchange Traded

Weak diversification

The 3 months correlation between Dupont and Exchange is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Dupont De i.e., Dupont De and Exchange Traded go up and down completely randomly.

Pair Corralation between Dupont De and Exchange Traded

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 10.81 times more return on investment than Exchange Traded. However, Dupont De is 10.81 times more volatile than Exchange Traded Concepts. It trades about 0.08 of its potential returns per unit of risk. Exchange Traded Concepts is currently generating about -0.01 per unit of risk. If you would invest  6,685  in Dupont De Nemours on May 2, 2025 and sell it today you would earn a total of  535.00  from holding Dupont De Nemours or generate 8.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	43.55%
Values	Daily Returns

Dupont De Nemours  vs.  Exchange Traded Concepts

Dupont De Nemours

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Dupont De may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Exchange Traded Concepts

Risk-Adjusted Performance

Very Weak

Over the last 90 days Exchange Traded Concepts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Exchange Traded is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Dupont De and Exchange Traded

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

The idea behind Dupont De Nemours and Exchange Traded Concepts 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.