Correlation Between Christian Dior and Weiss Korea

Can any of the company-specific risk be diversified away by investing in both Christian Dior and Weiss Korea 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 Weiss Korea 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 Weiss Korea Opportunity, you can compare the effects of market volatilities on Christian Dior and Weiss Korea 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 Weiss Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Christian Dior and Weiss Korea.

Diversification Opportunities for Christian Dior and Weiss Korea

-0.36

Correlation Coefficient

Christian Dior  Weiss Korea

Very good diversification

The 3 months correlation between Christian and Weiss is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Christian Dior SE and Weiss Korea Opportunity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weiss Korea Opportunity 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 Weiss Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weiss Korea Opportunity has no effect on the direction of Christian Dior i.e., Christian Dior and Weiss Korea go up and down completely randomly.

Pair Corralation between Christian Dior and Weiss Korea

Assuming the 90 days trading horizon Christian Dior is expected to generate 12.5 times less return on investment than Weiss Korea. But when comparing it to its historical volatility, Christian Dior SE is 1.1 times less risky than Weiss Korea. It trades about 0.02 of its potential returns per unit of risk. Weiss Korea Opportunity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  12,044  in Weiss Korea Opportunity on April 20, 2025 and sell it today you would earn a total of  2,856  from holding Weiss Korea Opportunity or generate 23.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Christian Dior SE  vs.  Weiss Korea Opportunity

Christian Dior SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Christian Dior SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Christian Dior is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Weiss Korea Opportunity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Weiss Korea Opportunity are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Weiss Korea unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Christian Dior and Weiss Korea

The main advantage of trading using opposite Christian Dior and Weiss Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Christian Dior position performs unexpectedly, Weiss Korea 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 Weiss Korea will offset losses from the drop in Weiss Korea's long position.

The idea behind Christian Dior SE and Weiss Korea Opportunity 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.