Correlation Between China Communications and INTERSHOP Communications
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By analyzing existing cross correlation between China Communications Services and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on China 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 China Communications with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Communications and INTERSHOP Communications.
Diversification Opportunities for China Communications and INTERSHOP Communications
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and INTERSHOP is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Communications Services and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and China 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 China Communications Services 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 China Communications i.e., China Communications and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between China Communications and INTERSHOP Communications
Assuming the 90 days horizon China Communications Services is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, China Communications Services is 1.49 times less risky than INTERSHOP Communications. The stock trades about -0.06 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 175.00 in INTERSHOP Communications Aktiengesellschaft on November 3, 2024 and sell it today you would earn a total of 5.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Communications Services vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| China Communications |
| INTERSHOP Communications |
China Communications and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Communications and INTERSHOP Communications
The main advantage of trading using opposite China Communications and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China 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.| China Communications vs. T Mobile | China Communications vs. China Mobile Limited | China Communications vs. Verizon Communications | China Communications vs. ATT Inc |
| INTERSHOP Communications vs. BAKED GAMES SA | INTERSHOP Communications vs. ECHO INVESTMENT ZY | INTERSHOP Communications vs. OURGAME INTHOLDL 00005 | INTERSHOP Communications vs. SEI INVESTMENTS |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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