Correlation Between Stag Industrial and Christian Dior
Can any of the company-specific risk be diversified away by investing in both Stag Industrial 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 Stag Industrial and Christian Dior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stag Industrial and Christian Dior SE, you can compare the effects of market volatilities on Stag Industrial 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 Stag Industrial with a short position of Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stag Industrial and Christian Dior.
Diversification Opportunities for Stag Industrial and Christian Dior
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stag and Christian is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Stag Industrial 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 Stag Industrial 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 Stag Industrial 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 Stag Industrial i.e., Stag Industrial and Christian Dior go up and down completely randomly.
Pair Corralation between Stag Industrial and Christian Dior
Assuming the 90 days trading horizon Stag Industrial is expected to generate 0.86 times more return on investment than Christian Dior. However, Stag Industrial is 1.17 times less risky than Christian Dior. It trades about 0.02 of its potential returns per unit of risk. Christian Dior SE is currently generating about -0.02 per unit of risk. If you would invest 3,024 in Stag Industrial on November 6, 2024 and sell it today you would earn a total of 257.00 from holding Stag Industrial or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stag Industrial vs. Christian Dior SE
Performance |
| Timeline |
| Stag Industrial |
| Christian Dior SE |
Stag Industrial and Christian Dior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stag Industrial and Christian Dior
The main advantage of trading using opposite Stag Industrial and Christian Dior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stag Industrial 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.| Stag Industrial vs. SALESFORCE INC CDR | Stag Industrial vs. GWILLI FOOD | Stag Industrial vs. PATTIES FOODS | Stag Industrial vs. Gruppo Mutuionline SpA |
| Christian Dior vs. BAKED GAMES SA | Christian Dior vs. DETALION GAMES SA | Christian Dior vs. Boyd Gaming | Christian Dior vs. GAMING FAC SA |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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