Correlation Between Lamar Advertising and INTERSHOP Communications
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By analyzing existing cross correlation between Lamar Advertising and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Lamar Advertising 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 Lamar Advertising with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and INTERSHOP Communications.
Diversification Opportunities for Lamar Advertising and INTERSHOP Communications
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lamar and INTERSHOP is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising i.e., Lamar Advertising and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Lamar Advertising and INTERSHOP Communications
Assuming the 90 days trading horizon Lamar Advertising is expected to generate 0.62 times more return on investment than INTERSHOP Communications. However, Lamar Advertising is 1.61 times less risky than INTERSHOP Communications. It trades about -0.17 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.11 per unit of risk. If you would invest 12,175 in Lamar Advertising on October 11, 2024 and sell it today you would lose (575.00) from holding Lamar Advertising or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Lamar Advertising |
| INTERSHOP Communications |
Lamar Advertising and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and INTERSHOP Communications
The main advantage of trading using opposite Lamar Advertising and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising 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.| Lamar Advertising vs. Wizz Air Holdings | Lamar Advertising vs. Pentair plc | Lamar Advertising vs. SOUTHWEST AIRLINES | Lamar Advertising vs. JAPAN AIRLINES |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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