Correlation Between Dupont De and EVgo Equity

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

Diversification Opportunities for Dupont De and EVgo Equity

-0.66

Correlation Coefficient

Dupont De  EVgo Equity

Excellent diversification

The 3 months correlation between Dupont and EVgo is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants 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 EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of Dupont De i.e., Dupont De and EVgo Equity go up and down completely randomly.

Pair Corralation between Dupont De and EVgo Equity

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.27 times more return on investment than EVgo Equity. However, Dupont De Nemours is 3.72 times less risky than EVgo Equity. It trades about 0.01 of its potential returns per unit of risk. EVgo Equity Warrants is currently generating about -0.07 per unit of risk. If you would invest  7,085  in Dupont De Nemours on May 10, 2025 and sell it today you would earn a total of  3.00  from holding Dupont De Nemours or generate 0.04% 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.  EVgo Equity Warrants

Dupont De Nemours

Risk-Adjusted Performance

Mild

Over the last 90 days Dupont De Nemours has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Dupont De is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

EVgo Equity Warrants

Risk-Adjusted Performance

Weakest

Over the last 90 days EVgo Equity Warrants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Dupont De and EVgo Equity

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

The idea behind Dupont De Nemours and EVgo Equity Warrants 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.