Correlation Between KERINGUNSPADR 1/10 and CHRISTIAN DIOR
Can any of the company-specific risk be diversified away by investing in both KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 and CHRISTIAN DIOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KERINGUNSPADR 110 EO and CHRISTIAN DIOR ADR14EO2, you can compare the effects of market volatilities on KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 with a short position of CHRISTIAN DIOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KERINGUNSPADR 1/10 and CHRISTIAN DIOR.
Diversification Opportunities for KERINGUNSPADR 1/10 and CHRISTIAN DIOR
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KERINGUNSPADR and CHRISTIAN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding KERINGUNSPADR 110 EO 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 KERINGUNSPADR 1/10 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 KERINGUNSPADR 110 EO 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 KERINGUNSPADR 1/10 i.e., KERINGUNSPADR 1/10 and CHRISTIAN DIOR go up and down completely randomly.
Pair Corralation between KERINGUNSPADR 1/10 and CHRISTIAN DIOR
Assuming the 90 days trading horizon KERINGUNSPADR 110 EO is expected to under-perform the CHRISTIAN DIOR. In addition to that, KERINGUNSPADR 1/10 is 1.27 times more volatile than CHRISTIAN DIOR ADR14EO2. It trades about -0.01 of its total potential returns per unit of risk. CHRISTIAN DIOR ADR14EO2 is currently generating about 0.01 per unit of volatility. If you would invest 14,929 in CHRISTIAN DIOR ADR14EO2 on October 14, 2024 and sell it today you would lose (29.00) from holding CHRISTIAN DIOR ADR14EO2 or give up 0.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KERINGUNSPADR 110 EO vs. CHRISTIAN DIOR ADR14EO2
Performance |
| Timeline |
| KERINGUNSPADR 1/10 |
| CHRISTIAN DIOR ADR14EO2 |
KERINGUNSPADR 1/10 and CHRISTIAN DIOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KERINGUNSPADR 1/10 and CHRISTIAN DIOR
The main advantage of trading using opposite KERINGUNSPADR 1/10 and CHRISTIAN DIOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KERINGUNSPADR 1/10 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.| 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 |
| CHRISTIAN DIOR vs. LVMH Mot Hennessy | CHRISTIAN DIOR vs. LVMH Mot Hennessy | CHRISTIAN DIOR vs. Christian Dior SE | CHRISTIAN DIOR 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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