Correlation Between Australian Agricultural and INTERSHOP Communications
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By analyzing existing cross correlation between Australian Agricultural and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Australian Agricultural 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 Australian Agricultural with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian Agricultural and INTERSHOP Communications.
Diversification Opportunities for Australian Agricultural and INTERSHOP Communications
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Australian and INTERSHOP is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Australian Agricultural and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Australian Agricultural 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 Australian Agricultural 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 Australian Agricultural i.e., Australian Agricultural and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Australian Agricultural and INTERSHOP Communications
Assuming the 90 days horizon Australian Agricultural is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, Australian Agricultural is 1.23 times less risky than INTERSHOP Communications. The stock trades about -0.03 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 202.00 in INTERSHOP Communications Aktiengesellschaft on September 3, 2024 and sell it today you would lose (17.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 8.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian Agricultural vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Australian Agricultural |
| INTERSHOP Communications |
Australian Agricultural and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian Agricultural and INTERSHOP Communications
The main advantage of trading using opposite Australian Agricultural and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian Agricultural 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.| Australian Agricultural vs. Archer Daniels Midland | Australian Agricultural vs. Tyson Foods | Australian Agricultural vs. Wilmar International Limited | Australian Agricultural vs. SalMar ASA |
| INTERSHOP Communications vs. Neinor Homes SA | INTERSHOP Communications vs. STRAYER EDUCATION | INTERSHOP Communications vs. Aedas Homes SA | INTERSHOP Communications vs. Corporate Office Properties |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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