Correlation Between Pampa Energía and INTERSHOP Communications
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By analyzing existing cross correlation between Pampa Energa SA and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Pampa Energía 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 Pampa Energía with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pampa Energía and INTERSHOP Communications.
Diversification Opportunities for Pampa Energía and INTERSHOP Communications
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pampa and INTERSHOP is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Pampa Energa SA and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Pampa Energía 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 Pampa Energa SA 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 Pampa Energía i.e., Pampa Energía and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Pampa Energía and INTERSHOP Communications
Assuming the 90 days trading horizon Pampa Energa SA is expected to generate 1.38 times more return on investment than INTERSHOP Communications. However, Pampa Energía is 1.38 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.52 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 6,300 in Pampa Energa SA on August 26, 2024 and sell it today you would earn a total of 1,700 from holding Pampa Energa SA or generate 26.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pampa Energa SA vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Pampa Energa SA |
| INTERSHOP Communications |
Pampa Energía and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pampa Energía and INTERSHOP Communications
The main advantage of trading using opposite Pampa Energía and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pampa Energía 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.| Pampa Energía vs. INTERSHOP Communications Aktiengesellschaft | Pampa Energía vs. Luckin Coffee | Pampa Energía vs. Daito Trust Construction | Pampa Energía vs. Chongqing Machinery Electric |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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