Correlation Between AXWAY SOFTWARE and INTERSHOP Communications
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By analyzing existing cross correlation between AXWAY SOFTWARE EO and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on AXWAY SOFTWARE and INTERSHOP Communications 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 AXWAY SOFTWARE with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXWAY SOFTWARE and INTERSHOP Communications.
Diversification Opportunities for AXWAY SOFTWARE and INTERSHOP Communications
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AXWAY and INTERSHOP is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AXWAY SOFTWARE EO and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and AXWAY SOFTWARE 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 AXWAY SOFTWARE EO are associated (or correlated) with INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of AXWAY SOFTWARE i.e., AXWAY SOFTWARE and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between AXWAY SOFTWARE and INTERSHOP Communications
Assuming the 90 days horizon AXWAY SOFTWARE EO is expected to generate 0.71 times more return on investment than INTERSHOP Communications. However, AXWAY SOFTWARE EO is 1.4 times less risky than INTERSHOP Communications. It trades about 0.06 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.01 per unit of risk. If you would invest 1,666 in AXWAY SOFTWARE EO on August 31, 2024 and sell it today you would earn a total of 1,054 from holding AXWAY SOFTWARE EO or generate 63.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXWAY SOFTWARE EO vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| AXWAY SOFTWARE EO |
| INTERSHOP Communications |
AXWAY SOFTWARE and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXWAY SOFTWARE and INTERSHOP Communications
The main advantage of trading using opposite AXWAY SOFTWARE and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXWAY SOFTWARE position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| AXWAY SOFTWARE vs. Taiwan Semiconductor Manufacturing | AXWAY SOFTWARE vs. Magnachip Semiconductor | AXWAY SOFTWARE vs. PennyMac Mortgage Investment | AXWAY SOFTWARE vs. Elmos Semiconductor SE |
| INTERSHOP Communications vs. Aegean Airlines SA | INTERSHOP Communications vs. INTER CARS SA | INTERSHOP Communications vs. Grupo Carso SAB | INTERSHOP Communications vs. United Airlines Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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