Correlation Between Christian Dior and Sanofi SA

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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

ChristianSanofiDiversified AwayChristianSanofiDiversified Away100%
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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Christian Dior SE  vs.  Sanofi SA

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -12-10-8-6-4-2
JavaScript chart by amCharts 3.21.15CDI SAN
       Timeline  
Christian Dior SE 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days Christian Dior SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Christian Dior is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Sanofi SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sanofi SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Sanofi SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan889092949698100102

Christian Dior and Sanofi SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.15CDI SAN
       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.
The idea behind Christian Dior SE and Sanofi SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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