Correlation Between Christian Dior and Sanofi SA
Can any of the company-specific risk be diversified away by investing in both Christian Dior and Sanofi SA 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 Sanofi SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Christian Dior SE and Sanofi SA, you can compare the effects of market volatilities on Christian Dior and Sanofi SA 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 Sanofi SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and Sanofi SA.
Diversification Opportunities for Christian Dior and Sanofi SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Christian and Sanofi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and Sanofi SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanofi SA 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 SE are associated (or correlated) with Sanofi SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanofi SA has no effect on the direction of Christian Dior i.e., Christian Dior and Sanofi SA go up and down completely randomly.
Pair Corralation between Christian Dior and Sanofi SA
If you would invest (100.00) in Christian Dior SE on October 14, 2024 and sell it today you would earn a total of 100.00 from holding Christian Dior SE or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Christian Dior SE vs. Sanofi SA
Performance |
Timeline |
Christian Dior SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sanofi SA |
Christian Dior and Sanofi SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Christian Dior and Sanofi SA
The main advantage of trading using opposite Christian Dior and Sanofi SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior position performs unexpectedly, Sanofi SA 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 Sanofi SA will offset losses from the drop in Sanofi SA's long position.Christian Dior vs. Hermes International SCA | ||
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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