Correlation Between Gamma Communications and INTERSHOP Communications
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gamma Communications plc and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Gamma Communications 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 Gamma Communications with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamma Communications and INTERSHOP Communications.
Diversification Opportunities for Gamma Communications and INTERSHOP Communications
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gamma and INTERSHOP is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gamma Communications plc and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Gamma Communications 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 Gamma Communications plc 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 Gamma Communications i.e., Gamma Communications and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Gamma Communications and INTERSHOP Communications
Assuming the 90 days horizon Gamma Communications plc is expected to generate 1.11 times more return on investment than INTERSHOP Communications. However, Gamma Communications is 1.11 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.01 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.12 per unit of risk. If you would invest 1,870 in Gamma Communications plc on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Gamma Communications plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gamma Communications plc vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Gamma Communications plc |
| INTERSHOP Communications |
Gamma Communications and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamma Communications and INTERSHOP Communications
The main advantage of trading using opposite Gamma Communications and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamma Communications 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.| Gamma Communications vs. Performance Food Group | Gamma Communications vs. Waste Management | Gamma Communications vs. CeoTronics AG | Gamma Communications vs. Cleanaway Waste Management |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |