Correlation Between Brown Forman and INTERSHOP Communications
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By analyzing existing cross correlation between Brown Forman and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Brown Forman 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 Brown Forman with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brown Forman and INTERSHOP Communications.
Diversification Opportunities for Brown Forman and INTERSHOP Communications
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brown and INTERSHOP is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Brown Forman and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Brown Forman 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 Brown Forman 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 Brown Forman i.e., Brown Forman and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Brown Forman and INTERSHOP Communications
Assuming the 90 days trading horizon Brown Forman is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, Brown Forman is 1.51 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 0.03 of returns per unit of risk over similar time horizon. If you would invest 147.00 in INTERSHOP Communications Aktiengesellschaft on September 15, 2024 and sell it today you would earn a total of 24.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brown Forman vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Brown Forman |
| INTERSHOP Communications |
Brown Forman and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brown Forman and INTERSHOP Communications
The main advantage of trading using opposite Brown Forman and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brown Forman 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.| Brown Forman vs. INTERSHOP Communications Aktiengesellschaft | Brown Forman vs. Verizon Communications | Brown Forman vs. DISTRICT METALS | Brown Forman vs. Ribbon Communications |
| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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