Correlation Between Dupont De and Nu Med

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

Diversification Opportunities for Dupont De and Nu Med

-0.61

Correlation Coefficient

Dupont De  Nu Med

Excellent diversification

The 3 months correlation between Dupont and NUMD is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Nu Med Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nu Med Plus 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 Nu Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nu Med Plus has no effect on the direction of Dupont De i.e., Dupont De and Nu Med go up and down completely randomly.

Pair Corralation between Dupont De and Nu Med

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.21 times more return on investment than Nu Med. However, Dupont De Nemours is 4.87 times less risky than Nu Med. It trades about 0.12 of its potential returns per unit of risk. Nu Med Plus is currently generating about -0.05 per unit of risk. If you would invest  6,823  in Dupont De Nemours on June 30, 2025 and sell it today you would earn a total of  795.00  from holding Dupont De Nemours or generate 11.65% 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.  Nu Med Plus

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

Nu Med Plus

Risk-Adjusted Performance

Weakest

Over the last 90 days Nu Med Plus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in October 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Dupont De and Nu Med

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

The idea behind Dupont De Nemours and Nu Med Plus 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.