Correlation Between Advisors Capital and Dupont De

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Can any of the company-specific risk be diversified away by investing in both Advisors Capital and Dupont De 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 Advisors Capital and Dupont De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advisors Capital Tactical and Dupont De Nemours, you can compare the effects of market volatilities on Advisors Capital and Dupont De 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 Advisors Capital with a short position of Dupont De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advisors Capital and Dupont De.

Diversification Opportunities for Advisors Capital and Dupont De

  Correlation Coefficient

Very weak diversification

The 3 months correlation between Advisors and Dupont is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Advisors Capital Tactical and Dupont De Nemours in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dupont De Nemours and Advisors Capital 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 Advisors Capital Tactical are associated (or correlated) with Dupont De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dupont De Nemours has no effect on the direction of Advisors Capital i.e., Advisors Capital and Dupont De go up and down completely randomly.

Pair Corralation between Advisors Capital and Dupont De

Assuming the 90 days horizon Advisors Capital Tactical is expected to under-perform the Dupont De. But the mutual fund apears to be less risky and, when comparing its historical volatility, Advisors Capital Tactical is 6.04 times less risky than Dupont De. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Dupont De Nemours is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  7,612  in Dupont De Nemours on September 9, 2022 and sell it today you would lose (642.00)  from holding Dupont De Nemours or give up 8.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

Advisors Capital Tactical  vs.  Dupont De Nemours

 Performance (%) 
Advisors Capital Tactical 
Advisors Performance
0 of 100
Over the last 90 days Advisors Capital Tactical has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Advisors Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Advisors Price Channel

Dupont De Nemours 
Dupont Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Dupont De Nemours are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Dupont De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dupont Price Channel

Advisors Capital and Dupont De Volatility Contrast

   Predicted Return Density   

Pair Trading with Advisors Capital and Dupont De

The main advantage of trading using opposite Advisors Capital and Dupont De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advisors Capital position performs unexpectedly, Dupont De 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 Dupont De will offset losses from the drop in Dupont De's long position.
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The idea behind Advisors Capital Tactical and Dupont De Nemours 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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Check out your portfolio center. 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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