Correlation Between US Foods and Christian Dior
Can any of the company-specific risk be diversified away by investing in both US Foods 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 US Foods and Christian Dior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Foods Holding and Christian Dior SE, you can compare the effects of market volatilities on US Foods 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 US Foods with a short position of Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Foods and Christian Dior.
Diversification Opportunities for US Foods and Christian Dior
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UFH and Christian is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding US Foods Holding 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 US Foods 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 US Foods Holding 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 US Foods i.e., US Foods and Christian Dior go up and down completely randomly.
Pair Corralation between US Foods and Christian Dior
Assuming the 90 days horizon US Foods Holding is expected to generate 0.97 times more return on investment than Christian Dior. However, US Foods Holding is 1.03 times less risky than Christian Dior. It trades about 0.23 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 5,550 in US Foods Holding on September 26, 2024 and sell it today you would earn a total of 1,000.00 from holding US Foods Holding or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Foods Holding vs. Christian Dior SE
Performance |
| Timeline |
| US Foods Holding |
| Christian Dior SE |
US Foods and Christian Dior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Foods and Christian Dior
The main advantage of trading using opposite US Foods and Christian Dior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Foods 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.| US Foods vs. Sysco | US Foods vs. Jernimo Martins SGPS | US Foods vs. JERONIMO MARTINS UNADR2 | US Foods vs. Performance Food Group |
| Christian Dior vs. LVMH Mot Hennessy | Christian Dior vs. Herms International Socit | Christian Dior vs. CHRISTIAN DIOR ADR14EO2 | Christian Dior vs. The Swatch Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |