Correlation Between Christian Dior and CHRISTIAN DIOR
Can any of the company-specific risk be diversified away by investing in both Christian Dior 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 Christian Dior and CHRISTIAN DIOR 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 CHRISTIAN DIOR ADR14EO2, you can compare the effects of market volatilities on Christian Dior 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 Christian Dior with a short position of CHRISTIAN DIOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and CHRISTIAN DIOR.
Diversification Opportunities for Christian Dior and CHRISTIAN DIOR
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Christian and CHRISTIAN is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and CHRISTIAN DIOR ADR14EO2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRISTIAN DIOR ADR14EO2 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 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 ADR14EO2 has no effect on the direction of Christian Dior i.e., Christian Dior and CHRISTIAN DIOR go up and down completely randomly.
Pair Corralation between Christian Dior and CHRISTIAN DIOR
Assuming the 90 days horizon Christian Dior is expected to generate 1.49 times less return on investment than CHRISTIAN DIOR. But when comparing it to its historical volatility, Christian Dior SE is 1.1 times less risky than CHRISTIAN DIOR. It trades about 0.16 of its potential returns per unit of risk. CHRISTIAN DIOR ADR14EO2 is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 13,347 in CHRISTIAN DIOR ADR14EO2 on September 26, 2024 and sell it today you would earn a total of 1,353 from holding CHRISTIAN DIOR ADR14EO2 or generate 10.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Christian Dior SE vs. CHRISTIAN DIOR ADR14EO2
Performance |
| Timeline |
| Christian Dior SE |
| CHRISTIAN DIOR ADR14EO2 |
Christian Dior and CHRISTIAN DIOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Christian Dior and CHRISTIAN DIOR
The main advantage of trading using opposite Christian Dior and CHRISTIAN DIOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior 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.| Christian Dior vs. LVMH Mot Hennessy | Christian Dior vs. Herms International Socit | Christian Dior vs. CHRISTIAN DIOR ADR14EO2 | Christian Dior vs. The Swatch Group |
| CHRISTIAN DIOR vs. LVMH Mot Hennessy | CHRISTIAN DIOR vs. Herms International Socit | CHRISTIAN DIOR vs. Christian Dior SE | CHRISTIAN DIOR vs. The Swatch Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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