Correlation Between Christian Dior and Chow Sang
Can any of the company-specific risk be diversified away by investing in both Christian Dior and Chow Sang 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 Christian Dior and Chow Sang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Christian Dior SE and Chow Sang Sang, you can compare the effects of market volatilities on Christian Dior and Chow Sang 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 Christian Dior with a short position of Chow Sang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and Chow Sang.
Diversification Opportunities for Christian Dior and Chow Sang
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Christian and Chow is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and Chow Sang Sang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chow Sang Sang and Christian Dior 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 Christian Dior SE are associated (or correlated) with Chow Sang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chow Sang Sang has no effect on the direction of Christian Dior i.e., Christian Dior and Chow Sang go up and down completely randomly.
Pair Corralation between Christian Dior and Chow Sang
If you would invest 99.00 in Chow Sang Sang on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Chow Sang Sang or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Christian Dior SE vs. Chow Sang Sang
Performance |
| Timeline |
| Christian Dior SE |
| Chow Sang Sang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Christian Dior and Chow Sang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Christian Dior and Chow Sang
The main advantage of trading using opposite Christian Dior and Chow Sang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior position performs unexpectedly, Chow Sang 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 Chow Sang will offset losses from the drop in Chow Sang's long position.The idea behind Christian Dior SE and Chow Sang Sang 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.| Chow Sang vs. Siriuspoint | Chow Sang vs. Barings BDC | Chow Sang vs. Chiba Bank Ltd | Chow Sang vs. Fomento Economico Mexicano |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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