Correlation Between EAGLE MATERIALS and INTERSHOP Communications
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By analyzing existing cross correlation between EAGLE MATERIALS and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on EAGLE MATERIALS 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 EAGLE MATERIALS with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAGLE MATERIALS and INTERSHOP Communications.
Diversification Opportunities for EAGLE MATERIALS and INTERSHOP Communications
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EAGLE and INTERSHOP is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding EAGLE MATERIALS and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS i.e., EAGLE MATERIALS and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between EAGLE MATERIALS and INTERSHOP Communications
Assuming the 90 days trading horizon EAGLE MATERIALS is expected to generate 1.89 times more return on investment than INTERSHOP Communications. However, EAGLE MATERIALS is 1.89 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.2 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.25 per unit of risk. If you would invest 26,400 in EAGLE MATERIALS on September 2, 2024 and sell it today you would earn a total of 2,800 from holding EAGLE MATERIALS or generate 10.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAGLE MATERIALS vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| EAGLE MATERIALS |
| INTERSHOP Communications |
EAGLE MATERIALS and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAGLE MATERIALS and INTERSHOP Communications
The main advantage of trading using opposite EAGLE MATERIALS and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAGLE MATERIALS 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.| EAGLE MATERIALS vs. BJs Wholesale Club | EAGLE MATERIALS vs. Caseys General Stores | EAGLE MATERIALS vs. American Public Education | EAGLE MATERIALS vs. Fast Retailing Co |
| INTERSHOP Communications vs. GRIFFIN MINING LTD | INTERSHOP Communications vs. UMC Electronics Co | INTERSHOP Communications vs. MCEWEN MINING INC | INTERSHOP Communications vs. ELECTRONIC ARTS |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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