Correlation Between Dupont De and Cumulus Media

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

Diversification Opportunities for Dupont De and Cumulus Media

-0.76

Correlation Coefficient

Dupont De  Cumulus Media

Pay attention - limited upside

The 3 months correlation between Dupont and Cumulus is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Dupont De i.e., Dupont De and Cumulus Media go up and down completely randomly.

Pair Corralation between Dupont De and Cumulus Media

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.16 times more return on investment than Cumulus Media. However, Dupont De Nemours is 6.24 times less risky than Cumulus Media. It trades about 0.36 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.01 per unit of risk. If you would invest  3,329  in Dupont De Nemours on August 18, 2025 and sell it today you would earn a total of  642.00  from holding Dupont De Nemours or generate 19.29% return on investment over 90 days.

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

Dupont De Nemours  vs.  Cumulus Media Class

Dupont De Nemours

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Dupont De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cumulus Media Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Dupont De and Cumulus Media

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

The idea behind Dupont De Nemours and Cumulus Media Class 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.