Correlation Between INTERSHOP Communications and Medtronic PLC
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Medtronic PLC, you can compare the effects of market volatilities on INTERSHOP Communications and Medtronic PLC 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 Medtronic PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Medtronic PLC.
Diversification Opportunities for INTERSHOP Communications and Medtronic PLC
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Medtronic is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Medtronic PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medtronic PLC 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 Medtronic PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medtronic PLC has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Medtronic PLC go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Medtronic PLC
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Medtronic PLC. In addition to that, INTERSHOP Communications is 1.77 times more volatile than Medtronic PLC. It trades about -0.02 of its total potential returns per unit of risk. Medtronic PLC is currently generating about 0.05 per unit of volatility. If you would invest 7,522 in Medtronic PLC on September 3, 2024 and sell it today you would earn a total of 585.00 from holding Medtronic PLC or generate 7.78% 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. Medtronic PLC
Performance |
| Timeline |
| INTERSHOP Communications |
| Medtronic PLC |
INTERSHOP Communications and Medtronic PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Medtronic PLC
The main advantage of trading using opposite INTERSHOP Communications and Medtronic PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Medtronic PLC 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 Medtronic PLC will offset losses from the drop in Medtronic PLC's long position.| INTERSHOP Communications vs. Neinor Homes SA | INTERSHOP Communications vs. STRAYER EDUCATION | INTERSHOP Communications vs. Aedas Homes SA | INTERSHOP Communications vs. Corporate Office Properties |
| Medtronic PLC vs. INTERSHOP Communications Aktiengesellschaft | Medtronic PLC vs. SWISS WATER DECAFFCOFFEE | Medtronic PLC vs. TSOGO SUN GAMING | Medtronic PLC vs. BJs Restaurants |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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