Correlation Between Associated British and INTERSHOP Communications
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By analyzing existing cross correlation between Associated British Foods and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Associated British 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 Associated British with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated British and INTERSHOP Communications.
Diversification Opportunities for Associated British and INTERSHOP Communications
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Associated and INTERSHOP is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Associated British Foods and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Associated British 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 Associated British Foods 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 Associated British i.e., Associated British and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Associated British and INTERSHOP Communications
Assuming the 90 days trading horizon Associated British Foods is expected to generate 0.5 times more return on investment than INTERSHOP Communications. However, Associated British Foods is 1.98 times less risky than INTERSHOP Communications. It trades about -0.21 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.23 per unit of risk. If you would invest 2,625 in Associated British Foods on September 24, 2024 and sell it today you would lose (150.00) from holding Associated British Foods or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated British Foods vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Associated British Foods |
| INTERSHOP Communications |
Associated British and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated British and INTERSHOP Communications
The main advantage of trading using opposite Associated British and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated British 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.| Associated British vs. United Rentals | Associated British vs. ALBIS LEASING AG | Associated British vs. ON SEMICONDUCTOR | Associated British vs. Tower Semiconductor |
| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Uber Technologies | INTERSHOP Communications vs. Nemetschek AG ON |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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