Correlation Between Spirent Communications and INTERSHOP Communications
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By analyzing existing cross correlation between Spirent Communications plc and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Spirent Communications 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 Spirent Communications with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spirent Communications and INTERSHOP Communications.
Diversification Opportunities for Spirent Communications and INTERSHOP Communications
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Spirent and INTERSHOP is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Spirent Communications plc and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Spirent Communications 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 Spirent Communications plc 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 Spirent Communications i.e., Spirent Communications and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Spirent Communications and INTERSHOP Communications
Assuming the 90 days horizon Spirent Communications plc is expected to generate 1.84 times more return on investment than INTERSHOP Communications. However, Spirent Communications is 1.84 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.03 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.02 per unit of risk. If you would invest 184.00 in Spirent Communications plc on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Spirent Communications plc or generate 11.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spirent Communications plc vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Spirent Communications |
| INTERSHOP Communications |
Spirent Communications and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spirent Communications and INTERSHOP Communications
The main advantage of trading using opposite Spirent Communications and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spirent Communications 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.| Spirent Communications vs. Verizon Communications | Spirent Communications vs. ATT Inc | Spirent Communications vs. ATT Inc | Spirent Communications vs. Deutsche Telekom AG |
| INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. Fastly Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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