Correlation Between ALBIS LEASING and INTERSHOP Communications
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By analyzing existing cross correlation between ALBIS LEASING AG and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on ALBIS LEASING 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 ALBIS LEASING with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and INTERSHOP Communications.
Diversification Opportunities for ALBIS LEASING and INTERSHOP Communications
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ALBIS and INTERSHOP is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and ALBIS LEASING 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 ALBIS LEASING AG 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 ALBIS LEASING i.e., ALBIS LEASING and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between ALBIS LEASING and INTERSHOP Communications
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to generate 0.62 times more return on investment than INTERSHOP Communications. However, ALBIS LEASING AG is 1.62 times less risky than INTERSHOP Communications. It trades about -0.08 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.05 per unit of risk. If you would invest 278.00 in ALBIS LEASING AG on October 16, 2024 and sell it today you would lose (4.00) from holding ALBIS LEASING AG or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| ALBIS LEASING AG |
| INTERSHOP Communications |
ALBIS LEASING and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and INTERSHOP Communications
The main advantage of trading using opposite ALBIS LEASING and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING 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.| ALBIS LEASING vs. ELECTRONIC ARTS | ALBIS LEASING vs. Samsung Electronics Co | ALBIS LEASING vs. Benchmark Electronics | ALBIS LEASING vs. KIMBALL ELECTRONICS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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