Correlation Between CDN IMPERIAL and INTERSHOP Communications
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By analyzing existing cross correlation between CDN IMPERIAL BANK and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on CDN IMPERIAL 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 CDN IMPERIAL with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CDN IMPERIAL and INTERSHOP Communications.
Diversification Opportunities for CDN IMPERIAL and INTERSHOP Communications
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CDN and INTERSHOP is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CDN IMPERIAL BANK and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and CDN IMPERIAL 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 CDN IMPERIAL BANK 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 CDN IMPERIAL i.e., CDN IMPERIAL and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between CDN IMPERIAL and INTERSHOP Communications
Assuming the 90 days trading horizon CDN IMPERIAL BANK is expected to generate 0.44 times more return on investment than INTERSHOP Communications. However, CDN IMPERIAL BANK is 2.3 times less risky than INTERSHOP Communications. It trades about 0.2 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.04 per unit of risk. If you would invest 3,329 in CDN IMPERIAL BANK on September 14, 2024 and sell it today you would earn a total of 2,930 from holding CDN IMPERIAL BANK or generate 88.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
CDN IMPERIAL BANK vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| CDN IMPERIAL BANK |
| INTERSHOP Communications |
CDN IMPERIAL and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CDN IMPERIAL and INTERSHOP Communications
The main advantage of trading using opposite CDN IMPERIAL and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CDN IMPERIAL 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.| CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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