Correlation Between Dupont De and Chase Growth

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

Diversification Opportunities for Dupont De and Chase Growth

0.82

Correlation Coefficient

Dupont De  Chase Growth

Very poor diversification

The 3 months correlation between Dupont and Chase is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth 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 Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Dupont De i.e., Dupont De and Chase Growth go up and down completely randomly.

Pair Corralation between Dupont De and Chase Growth

Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.86 times less return on investment than Chase Growth. In addition to that, Dupont De is 2.26 times more volatile than Chase Growth Fund. It trades about 0.08 of its total potential returns per unit of risk. Chase Growth Fund is currently generating about 0.32 per unit of volatility. If you would invest  1,319  in Chase Growth Fund on May 4, 2025 and sell it today you would earn a total of  216.00  from holding Chase Growth Fund or generate 16.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Dupont De Nemours  vs.  Chase Growth Fund

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 5 (%) 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 September 2025.

Chase Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Chase Growth Fund are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Chase Growth showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dupont De and Chase Growth

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

The idea behind Dupont De Nemours and Chase Growth Fund 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.