Correlation Between INTERSHOP Communications and Gladstone Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Gladstone Investment, you can compare the effects of market volatilities on INTERSHOP Communications and Gladstone Investment 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 INTERSHOP Communications with a short position of Gladstone Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Gladstone Investment.
Diversification Opportunities for INTERSHOP Communications and Gladstone Investment
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Gladstone is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Gladstone Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gladstone Investment and INTERSHOP 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 INTERSHOP Communications Aktiengesellschaft are associated (or correlated) with Gladstone Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gladstone Investment has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Gladstone Investment go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Gladstone Investment
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Gladstone Investment. In addition to that, INTERSHOP Communications is 1.09 times more volatile than Gladstone Investment. It trades about 0.0 of its total potential returns per unit of risk. Gladstone Investment is currently generating about 0.06 per unit of volatility. If you would invest 1,150 in Gladstone Investment on August 26, 2024 and sell it today you would earn a total of 139.00 from holding Gladstone Investment or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Gladstone Investment
Performance |
| Timeline |
| INTERSHOP Communications |
| Gladstone Investment |
INTERSHOP Communications and Gladstone Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Gladstone Investment
The main advantage of trading using opposite INTERSHOP Communications and Gladstone Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Gladstone Investment 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 Gladstone Investment will offset losses from the drop in Gladstone Investment's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and Gladstone Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Gladstone Investment vs. Lyxor 1 | Gladstone Investment vs. Xtrackers LevDAX | Gladstone Investment vs. Xtrackers ShortDAX |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |