Correlation Between Fast Retailing and INTERSHOP Communications
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By analyzing existing cross correlation between Fast Retailing Co and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Fast Retailing 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 Fast Retailing with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and INTERSHOP Communications.
Diversification Opportunities for Fast Retailing and INTERSHOP Communications
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fast and INTERSHOP is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Fast Retailing 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 Fast Retailing Co 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 Fast Retailing i.e., Fast Retailing and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Fast Retailing and INTERSHOP Communications
Assuming the 90 days trading horizon Fast Retailing Co is expected to generate 0.84 times more return on investment than INTERSHOP Communications. However, Fast Retailing Co is 1.19 times less risky than INTERSHOP Communications. It trades about 0.45 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.16 per unit of risk. If you would invest 29,000 in Fast Retailing Co on September 13, 2024 and sell it today you would earn a total of 4,620 from holding Fast Retailing Co or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fast Retailing Co vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Fast Retailing |
| INTERSHOP Communications |
Fast Retailing and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and INTERSHOP Communications
The main advantage of trading using opposite Fast Retailing and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing 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.| Fast Retailing vs. Apple Inc | Fast Retailing vs. Apple Inc | Fast Retailing vs. Apple Inc | Fast Retailing vs. Apple Inc |
| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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