Correlation Between LVMH Moet and Kering SA
Can any of the company-specific risk be diversified away by investing in both LVMH Moet and Kering SA 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 LVMH Moet and Kering SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LVMH Moet Hennessy and Kering SA, you can compare the effects of market volatilities on LVMH Moet and Kering SA 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 LVMH Moet with a short position of Kering SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LVMH Moet and Kering SA.
Diversification Opportunities for LVMH Moet and Kering SA
Very weak diversification
The 3 months correlation between LVMH and Kering is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding LVMH Moet Hennessy and Kering SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kering SA and LVMH Moet 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 LVMH Moet Hennessy are associated (or correlated) with Kering SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kering SA has no effect on the direction of LVMH Moet i.e., LVMH Moet and Kering SA go up and down completely randomly.
Pair Corralation between LVMH Moet and Kering SA
If you would invest 24,600 in Kering SA on November 3, 2024 and sell it today you would earn a total of 991.00 from holding Kering SA or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
LVMH Moet Hennessy vs. Kering SA
Performance |
| Timeline |
| LVMH Moet Hennessy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kering SA |
LVMH Moet and Kering SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LVMH Moet and Kering SA
The main advantage of trading using opposite LVMH Moet and Kering SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LVMH Moet position performs unexpectedly, Kering SA 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 Kering SA will offset losses from the drop in Kering SA's long position.| LVMH Moet vs. Hermes International SA | LVMH Moet vs. Hermes International SCA | LVMH Moet vs. Kering SA | LVMH Moet vs. Capri Holdings |
| Kering SA vs. Prada SpA | Kering SA vs. Kering SA | Kering SA vs. Christian Dior SE | Kering SA vs. Compagnie Financiere 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |