Correlation Between Dupont De and Sasol
Can any of the company-specific risk be diversified away by investing in both Dupont De and Sasol 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 Sasol 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 Sasol, you can compare the effects of market volatilities on Dupont De and Sasol 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 Sasol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Sasol.
Diversification Opportunities for Dupont De and Sasol
Poor diversification
The 3 months correlation between Dupont and Sasol is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Sasol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sasol 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 Sasol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sasol has no effect on the direction of Dupont De i.e., Dupont De and Sasol go up and down completely randomly.
Pair Corralation between Dupont De and Sasol
Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 0.52 times more return on investment than Sasol. However, Dupont De Nemours is 1.94 times less risky than Sasol. It trades about 0.06 of its potential returns per unit of risk. Sasol is currently generating about 0.03 per unit of risk. If you would invest 7,555 in Dupont De Nemours on July 20, 2025 and sell it today you would earn a total of 402.00 from holding Dupont De Nemours or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dupont De Nemours vs. Sasol
Performance |
| Timeline |
| Dupont De Nemours |
| Sasol |
Dupont De and Sasol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Sasol
The main advantage of trading using opposite Dupont De and Sasol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Sasol 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 Sasol will offset losses from the drop in Sasol's long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
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 the AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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