Correlation Between CHRISTIAN DIOR and KERINGUNSPADR 1/10

Can any of the company-specific risk be diversified away by investing in both CHRISTIAN DIOR and KERINGUNSPADR 1/10 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 CHRISTIAN DIOR and KERINGUNSPADR 1/10 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CHRISTIAN DIOR ADR14EO2 and KERINGUNSPADR 110 EO, you can compare the effects of market volatilities on CHRISTIAN DIOR and KERINGUNSPADR 1/10 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 CHRISTIAN DIOR with a short position of KERINGUNSPADR 1/10. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRISTIAN DIOR and KERINGUNSPADR 1/10.

Diversification Opportunities for CHRISTIAN DIOR and KERINGUNSPADR 1/10

0.0

Correlation Coefficient

CHRISTIAN DIOR  KERINGUNSPADR 1/10

Pay attention - limited upside

The 3 months correlation between CHRISTIAN and KERINGUNSPADR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHRISTIAN DIOR ADR14EO2 and KERINGUNSPADR 110 EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERINGUNSPADR 1/10 and CHRISTIAN DIOR 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 CHRISTIAN DIOR ADR14EO2 are associated (or correlated) with KERINGUNSPADR 1/10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERINGUNSPADR 1/10 has no effect on the direction of CHRISTIAN DIOR i.e., CHRISTIAN DIOR and KERINGUNSPADR 1/10 go up and down completely randomly.

Pair Corralation between CHRISTIAN DIOR and KERINGUNSPADR 1/10

If you would invest  0.00  in KERINGUNSPADR 110 EO on February 16, 2024 and sell it today you would earn a total of  0.00  from holding KERINGUNSPADR 110 EO or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CHRISTIAN DIOR ADR14EO2  vs.  KERINGUNSPADR 110 EO

CHRISTIAN DIOR ADR14EO2

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CHRISTIAN DIOR ADR14EO2 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CHRISTIAN DIOR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

KERINGUNSPADR 1/10

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KERINGUNSPADR 110 EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CHRISTIAN DIOR and KERINGUNSPADR 1/10

The main advantage of trading using opposite CHRISTIAN DIOR and KERINGUNSPADR 1/10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRISTIAN DIOR position performs unexpectedly, KERINGUNSPADR 1/10 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 KERINGUNSPADR 1/10 will offset losses from the drop in KERINGUNSPADR 1/10's long position.

The idea behind CHRISTIAN DIOR ADR14EO2 and KERINGUNSPADR 110 EO 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.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.