Correlation Between Dupont De and MFC Asset

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

Diversification Opportunities for Dupont De and MFC Asset

-0.74

Correlation Coefficient

Dupont De  MFC Asset

Pay attention - limited upside

The 3 months correlation between Dupont and MFC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and MFC Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Asset Management 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 MFC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Asset Management has no effect on the direction of Dupont De i.e., Dupont De and MFC Asset go up and down completely randomly.

Pair Corralation between Dupont De and MFC Asset

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.82 times more return on investment than MFC Asset. However, Dupont De Nemours is 1.23 times less risky than MFC Asset. It trades about 0.16 of its potential returns per unit of risk. MFC Asset Management is currently generating about -0.15 per unit of risk. If you would invest  6,652  in Dupont De Nemours on June 13, 2025 and sell it today you would earn a total of  1,023  from holding Dupont De Nemours or generate 15.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Dupont De Nemours  vs.  MFC Asset Management

Dupont De Nemours

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 12 (%) 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.

MFC Asset Management

Risk-Adjusted Performance

Weakest

Over the last 90 days MFC Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in October 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Dupont De and MFC Asset

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

The idea behind Dupont De Nemours and MFC Asset Management 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.