Correlation Between Dupont De and Jerónimo Martins

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

Diversification Opportunities for Dupont De and Jerónimo Martins

0.73

Correlation Coefficient

Dupont De  Jerónimo Martins

Poor diversification

The 3 months correlation between Dupont and Jerónimo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Jernimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jernimo Martins SGPS 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 Jerónimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jernimo Martins SGPS has no effect on the direction of Dupont De i.e., Dupont De and Jerónimo Martins go up and down completely randomly.

Pair Corralation between Dupont De and Jerónimo Martins

Allowing for the 90-day total investment horizon Dupont De Nemours is expected to generate 1.31 times more return on investment than Jerónimo Martins. However, Dupont De is 1.31 times more volatile than Jernimo Martins SGPS. It trades about 0.2 of its potential returns per unit of risk. Jernimo Martins SGPS is currently generating about 0.05 per unit of risk. If you would invest  6,269  in Dupont De Nemours on April 23, 2025 and sell it today you would earn a total of  1,485  from holding Dupont De Nemours or generate 23.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Dupont De Nemours  vs.  Jernimo Martins SGPS

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 15 (%) 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.

Jernimo Martins SGPS

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jernimo Martins SGPS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Jerónimo Martins is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Dupont De and Jerónimo Martins

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

The idea behind Dupont De Nemours and Jernimo Martins SGPS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.