Correlation Between LVMH Mot and Christian Dior
Can any of the company-specific risk be diversified away by investing in both LVMH Mot 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 LVMH Mot and Christian Dior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LVMH Mot Hennessy and Christian Dior SE, you can compare the effects of market volatilities on LVMH Mot 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 LVMH Mot with a short position of Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of LVMH Mot and Christian Dior.
Diversification Opportunities for LVMH Mot and Christian Dior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LVMH and Christian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LVMH Mot Hennessy and Christian Dior SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christian Dior SE and LVMH Mot 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 Mot Hennessy 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 SE has no effect on the direction of LVMH Mot i.e., LVMH Mot and Christian Dior go up and down completely randomly.
Pair Corralation between LVMH Mot and Christian Dior
If you would invest 0.00 in Christian Dior SE on January 4, 2025 and sell it today you would earn a total of 0.00 from holding Christian Dior SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
LVMH Mot Hennessy vs. Christian Dior SE
Performance |
| Timeline |
| LVMH Mot Hennessy |
| Christian Dior SE |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
LVMH Mot and Christian Dior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LVMH Mot and Christian Dior
The main advantage of trading using opposite LVMH Mot and Christian Dior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LVMH Mot 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.| LVMH Mot vs. ARDAGH METAL PACDL 0001 | LVMH Mot vs. Computer And Technologies | LVMH Mot vs. De Grey Mining | LVMH Mot vs. DISTRICT METALS |
| Christian Dior vs. Monster Beverage Corp | Christian Dior vs. Coeur Mining | Christian Dior vs. Thai Beverage Public | Christian Dior vs. CORNISH METALS INC |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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