Correlation Between ARDAGH METAL and Christian Dior
Can any of the company-specific risk be diversified away by investing in both ARDAGH METAL and Christian Dior 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 ARDAGH METAL and Christian Dior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ARDAGH METAL PACDL 0001 and Christian Dior SE, you can compare the effects of market volatilities on ARDAGH METAL and Christian Dior 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 ARDAGH METAL with a short position of Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARDAGH METAL and Christian Dior.
Diversification Opportunities for ARDAGH METAL and Christian Dior
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ARDAGH and Christian is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ARDAGH METAL PACDL 0001 and Christian Dior SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christian Dior SE and ARDAGH METAL 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 ARDAGH METAL PACDL 0001 are associated (or correlated) with Christian Dior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christian Dior SE has no effect on the direction of ARDAGH METAL i.e., ARDAGH METAL and Christian Dior go up and down completely randomly.
Pair Corralation between ARDAGH METAL and Christian Dior
Assuming the 90 days horizon ARDAGH METAL PACDL 0001 is expected to under-perform the Christian Dior. In addition to that, ARDAGH METAL is 1.74 times more volatile than Christian Dior SE. It trades about -0.11 of its total potential returns per unit of risk. Christian Dior SE is currently generating about 0.26 per unit of volatility. If you would invest 58,200 in Christian Dior SE on November 6, 2024 and sell it today you would earn a total of 7,450 from holding Christian Dior SE or generate 12.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ARDAGH METAL PACDL 0001 vs. Christian Dior SE
Performance |
| Timeline |
| ARDAGH METAL PACDL |
| Christian Dior SE |
ARDAGH METAL and Christian Dior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARDAGH METAL and Christian Dior
The main advantage of trading using opposite ARDAGH METAL and Christian Dior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARDAGH METAL position performs unexpectedly, Christian Dior 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 Christian Dior will offset losses from the drop in Christian Dior's long position.| ARDAGH METAL vs. Merit Medical Systems | ARDAGH METAL vs. Regal Hotels International | ARDAGH METAL vs. UNIVMUSIC GRPADR050 | ARDAGH METAL vs. Genertec Universal Medical |
| Christian Dior vs. Infrastrutture Wireless Italiane | Christian Dior vs. BAKED GAMES SA | Christian Dior vs. DETALION GAMES SA | Christian Dior vs. CONTAGIOUS GAMING INC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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