Correlation Between Dupont Denemours and Bank First

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Dupont Denemours and Bank First 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 Denemours and Bank First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont Denemours and Bank First National, you can compare the effects of market volatilities on Dupont Denemours and Bank First 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 Denemours with a short position of Bank First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont Denemours and Bank First.

Diversification Opportunities for Dupont Denemours and Bank First

-0.61
  Correlation Coefficient

Excellent diversification

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

Pair Corralation between Dupont Denemours and Bank First

Allowing for the 90-day total investment horizon Dupont Denemours is expected to generate 1.18 times more return on investment than Bank First. However, Dupont Denemours is 1.18 times more volatile than Bank First National. It trades about 0.39 of its potential returns per unit of risk. Bank First National is currently generating about 0.08 per unit of risk. If you would invest  5,430  in Dupont Denemours on May 16, 2022 and sell it today you would earn a total of  840.00  from holding Dupont Denemours or generate 15.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Dupont Denemours  vs.  Bank First National

 Performance (%) 
       Timeline  
Dupont Denemours 
Dupont Performance
0 of 100
Over the last 90 days Dupont Denemours has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Dupont Denemours is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Dupont Price Channel

Bank First National 
Bank First Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bank First National are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat sluggish technical and fundamental indicators, Bank First sustained solid returns over the last few months and may actually be approaching a breakup point.

Bank First Price Channel

Dupont Denemours and Bank First Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Dupont Denemours and Bank First

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

Bank First National

Pair trading matchups for Bank First

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go