Correlation Between Dupont De and First Eagle

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

Diversification Opportunities for Dupont De and First Eagle

0.86

Correlation Coefficient

Dupont De  First Eagle

Very poor diversification

The 3 months correlation between Dupont and First is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Small has no effect on the direction of Dupont De i.e., Dupont De and First Eagle go up and down completely randomly.

Pair Corralation between Dupont De and First Eagle

Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.25 times less return on investment than First Eagle. In addition to that, Dupont De is 1.48 times more volatile than First Eagle Small. It trades about 0.12 of its total potential returns per unit of risk. First Eagle Small is currently generating about 0.23 per unit of volatility. If you would invest  903.00  in First Eagle Small on May 1, 2025 and sell it today you would earn a total of  159.00  from holding First Eagle Small or generate 17.61% return on investment over 90 days.

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

Dupont De Nemours  vs.  First Eagle Small

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.

First Eagle Small

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Small are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, First Eagle showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dupont De and First Eagle

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

The idea behind Dupont De Nemours and First Eagle Small 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.