Correlation Between American Eagle and INTERSHOP Communications
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By analyzing existing cross correlation between American Eagle Outfitters and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on American Eagle 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 American Eagle with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Eagle and INTERSHOP Communications.
Diversification Opportunities for American Eagle and INTERSHOP Communications
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between American and INTERSHOP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding American Eagle Outfitters and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and American Eagle 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 American Eagle Outfitters 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 American Eagle i.e., American Eagle and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between American Eagle and INTERSHOP Communications
Assuming the 90 days trading horizon American Eagle Outfitters is expected to generate 1.63 times more return on investment than INTERSHOP Communications. However, American Eagle is 1.63 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.0 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.19 per unit of risk. If you would invest 1,667 in American Eagle Outfitters on October 25, 2024 and sell it today you would lose (37.00) from holding American Eagle Outfitters or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Eagle Outfitters vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| American Eagle Outfitters |
| INTERSHOP Communications |
American Eagle and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Eagle and INTERSHOP Communications
The main advantage of trading using opposite American Eagle and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Eagle 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.| American Eagle vs. Beta Systems Software | American Eagle vs. APPLIED MATERIALS | American Eagle vs. Summit Materials | American Eagle vs. CyberArk Software |
| INTERSHOP Communications vs. DAIDO METAL TD | INTERSHOP Communications vs. Nippon Light Metal | INTERSHOP Communications vs. TITANIUM TRANSPORTGROUP | INTERSHOP Communications vs. British American Tobacco |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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