Correlation Between Christian Dior and Brunello Cucinelli
Can any of the company-specific risk be diversified away by investing in both Christian Dior and Brunello Cucinelli 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 Brunello Cucinelli 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 Brunello Cucinelli SpA, you can compare the effects of market volatilities on Christian Dior and Brunello Cucinelli 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 Brunello Cucinelli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and Brunello Cucinelli.
Diversification Opportunities for Christian Dior and Brunello Cucinelli
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Christian and Brunello is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and Brunello Cucinelli SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunello Cucinelli SpA 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 Brunello Cucinelli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunello Cucinelli SpA has no effect on the direction of Christian Dior i.e., Christian Dior and Brunello Cucinelli go up and down completely randomly.
Pair Corralation between Christian Dior and Brunello Cucinelli
Assuming the 90 days horizon Christian Dior SE is expected to under-perform the Brunello Cucinelli. In addition to that, Christian Dior is 1.5 times more volatile than Brunello Cucinelli SpA. It trades about -0.08 of its total potential returns per unit of risk. Brunello Cucinelli SpA is currently generating about 0.08 per unit of volatility. If you would invest 6,341 in Brunello Cucinelli SpA on November 27, 2024 and sell it today you would earn a total of 150.00 from holding Brunello Cucinelli SpA or generate 2.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Christian Dior SE vs. Brunello Cucinelli SpA
Performance |
| Timeline |
| Christian Dior SE |
| Brunello Cucinelli SpA |
Christian Dior and Brunello Cucinelli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Christian Dior and Brunello Cucinelli
The main advantage of trading using opposite Christian Dior and Brunello Cucinelli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior position performs unexpectedly, Brunello Cucinelli 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 Brunello Cucinelli will offset losses from the drop in Brunello Cucinelli's long position.| Christian Dior vs. Kering SA | Christian Dior vs. Compagnie Financire Richemont | Christian Dior vs. Prada SpA | Christian Dior vs. Compagnie Financiere Richemont |
| Brunello Cucinelli vs. LVMH Mot Hennessy | Brunello Cucinelli vs. Hermes International SA | Brunello Cucinelli vs. Hermes International SCA | Brunello Cucinelli vs. Christian Dior SE |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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