Correlation Between Almonty Industries and Christian Dior

Can any of the company-specific risk be diversified away by investing in both Almonty Industries and Christian Dior 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 Almonty Industries and Christian Dior into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Almonty Industries and Christian Dior SE, you can compare the effects of market volatilities on Almonty Industries and Christian Dior 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 Almonty Industries with a short position of Christian Dior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Almonty Industries and Christian Dior.

Diversification Opportunities for Almonty Industries and Christian Dior

-0.7

Correlation Coefficient

Almonty Industries  Christian Dior

Excellent diversification

The 3 months correlation between Almonty and Christian is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Almonty Industries and Christian Dior SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Christian Dior SE and Almonty Industries 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 Almonty Industries are associated (or correlated) with Christian Dior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Christian Dior SE has no effect on the direction of Almonty Industries i.e., Almonty Industries and Christian Dior go up and down completely randomly.

Pair Corralation between Almonty Industries and Christian Dior

Assuming the 90 days horizon Almonty Industries is expected to generate 1.52 times more return on investment than Christian Dior. However, Almonty Industries is 1.52 times more volatile than Christian Dior SE. It trades about 0.07 of its potential returns per unit of risk. Christian Dior SE is currently generating about -0.05 per unit of risk. If you would invest  51.00  in Almonty Industries on February 9, 2025 and sell it today you would earn a total of  125.00  from holding Almonty Industries or generate 245.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	53.44%
Values	Daily Returns

Almonty Industries  vs.  Christian Dior SE

Almonty Industries

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Almonty Industries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Almonty Industries reported solid returns over the last few months and may actually be approaching a breakup point.

Christian Dior SE

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Almonty Industries and Christian Dior

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

The idea behind Almonty Industries and Christian Dior SE 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.