Correlation Between Dupont De and Labiana Health

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

Diversification Opportunities for Dupont De and Labiana Health

0.66

Correlation Coefficient

Dupont De  Labiana Health

Poor diversification

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

Pair Corralation between Dupont De and Labiana Health

Allowing for the 90-day total investment horizon Dupont De is expected to generate 1.19 times less return on investment than Labiana Health. But when comparing it to its historical volatility, Dupont De Nemours is 1.63 times less risky than Labiana Health. It trades about 0.12 of its potential returns per unit of risk. Labiana Health SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  344.00  in Labiana Health SA on May 27, 2025 and sell it today you would earn a total of  48.00  from holding Labiana Health SA or generate 13.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.92%
Values	Daily Returns

Dupont De Nemours  vs.  Labiana Health SA

Dupont De Nemours

Risk-Adjusted Performance

Fair

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 weak fundamental indicators, Dupont De may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Labiana Health SA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Labiana Health SA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Labiana Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dupont De and Labiana Health

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

The idea behind Dupont De Nemours and Labiana Health SA 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.