Correlation Between Commonwealth Bank and INTERSHOP Communications
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By analyzing existing cross correlation between Commonwealth Bank of and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Commonwealth Bank 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 Commonwealth Bank with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commonwealth Bank and INTERSHOP Communications.
Diversification Opportunities for Commonwealth Bank and INTERSHOP Communications
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Commonwealth and INTERSHOP is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Commonwealth Bank of and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Commonwealth Bank 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 Commonwealth Bank of 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 Commonwealth Bank i.e., Commonwealth Bank and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Commonwealth Bank and INTERSHOP Communications
Assuming the 90 days horizon Commonwealth Bank of is expected to generate 0.49 times more return on investment than INTERSHOP Communications. However, Commonwealth Bank of is 2.02 times less risky than INTERSHOP Communications. It trades about 0.14 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 5,814 in Commonwealth Bank of on September 14, 2024 and sell it today you would earn a total of 3,730 from holding Commonwealth Bank of or generate 64.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Commonwealth Bank of vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Commonwealth Bank |
| INTERSHOP Communications |
Commonwealth Bank and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commonwealth Bank and INTERSHOP Communications
The main advantage of trading using opposite Commonwealth Bank and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commonwealth Bank 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.| Commonwealth Bank vs. Agricultural Bank of | Commonwealth Bank vs. Superior Plus Corp | Commonwealth Bank vs. SIVERS SEMICONDUCTORS AB | Commonwealth Bank vs. CHINA HUARONG ENERHD 50 |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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