Correlation Between DGELN and Inter Parfums
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By analyzing existing cross correlation between DGELN 52 24 OCT 25 and Inter Parfums, you can compare the effects of market volatilities on DGELN and Inter Parfums 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 DGELN with a short position of Inter Parfums. Check out your portfolio center. Please also check ongoing floating volatility patterns of DGELN and Inter Parfums.
Diversification Opportunities for DGELN and Inter Parfums
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between DGELN and Inter is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding DGELN 52 24 OCT 25 and Inter Parfums in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Parfums and DGELN 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 DGELN 52 24 OCT 25 are associated (or correlated) with Inter Parfums. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Parfums has no effect on the direction of DGELN i.e., DGELN and Inter Parfums go up and down completely randomly.
Pair Corralation between DGELN and Inter Parfums
Assuming the 90 days trading horizon DGELN is expected to generate 10.66 times less return on investment than Inter Parfums. But when comparing it to its historical volatility, DGELN 52 24 OCT 25 is 8.33 times less risky than Inter Parfums. It trades about 0.14 of its potential returns per unit of risk. Inter Parfums is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 12,192 in Inter Parfums on September 13, 2024 and sell it today you would earn a total of 1,562 from holding Inter Parfums or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.09% |
| Values | Daily Returns |
DGELN 52 24 OCT 25 vs. Inter Parfums
Performance |
| Timeline |
| DGELN 52 24 |
| Inter Parfums |
DGELN and Inter Parfums Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DGELN and Inter Parfums
The main advantage of trading using opposite DGELN and Inter Parfums positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DGELN position performs unexpectedly, Inter Parfums 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 Inter Parfums will offset losses from the drop in Inter Parfums' long position.The idea behind DGELN 52 24 OCT 25 and Inter Parfums pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Inter Parfums vs. Edgewell Personal Care | Inter Parfums vs. Nu Skin Enterprises | Inter Parfums vs. Helen of Troy | Inter Parfums vs. European Wax Center |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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