Correlation Between Christian Dior and KERINGUNSPADR 1/10
Can any of the company-specific risk be diversified away by investing in both Christian Dior and KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 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 KERINGUNSPADR 110 EO, you can compare the effects of market volatilities on Christian Dior and KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and KERINGUNSPADR 1/10.
Diversification Opportunities for Christian Dior and KERINGUNSPADR 1/10
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Christian and KERINGUNSPADR is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and KERINGUNSPADR 110 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERINGUNSPADR 1/10 has no effect on the direction of Christian Dior i.e., Christian Dior and KERINGUNSPADR 1/10 go up and down completely randomly.
Pair Corralation between Christian Dior and KERINGUNSPADR 1/10
Assuming the 90 days horizon Christian Dior SE is expected to generate 0.74 times more return on investment than KERINGUNSPADR 1/10. However, Christian Dior SE is 1.35 times less risky than KERINGUNSPADR 1/10. It trades about 0.01 of its potential returns per unit of risk. KERINGUNSPADR 110 EO is currently generating about -0.01 per unit of risk. If you would invest 59,993 in Christian Dior SE on October 14, 2024 and sell it today you would lose (193.00) from holding Christian Dior SE or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Christian Dior SE vs. KERINGUNSPADR 110 EO
Performance |
| Timeline |
| Christian Dior SE |
| KERINGUNSPADR 1/10 |
Christian Dior and KERINGUNSPADR 1/10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Christian Dior and KERINGUNSPADR 1/10
The main advantage of trading using opposite Christian Dior and KERINGUNSPADR 1/10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior position performs unexpectedly, KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 will offset losses from the drop in KERINGUNSPADR 1/10's long position.| Christian Dior vs. Tencent Music Entertainment | Christian Dior vs. Globex Mining Enterprises | Christian Dior vs. RCS MediaGroup SpA | Christian Dior vs. MCEWEN MINING INC |
| KERINGUNSPADR 1/10 vs. LVMH Mot Hennessy | KERINGUNSPADR 1/10 vs. LVMH Mot Hennessy | KERINGUNSPADR 1/10 vs. Christian Dior SE | KERINGUNSPADR 1/10 vs. Compagnie Financire Richemont |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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