Correlation Between INTERSHOP Communications and TITAN MACHINERY
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and TITAN MACHINERY, you can compare the effects of market volatilities on INTERSHOP Communications and TITAN MACHINERY 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 TITAN MACHINERY. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and TITAN MACHINERY.
Diversification Opportunities for INTERSHOP Communications and TITAN MACHINERY
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and TITAN is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and TITAN MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TITAN MACHINERY 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 TITAN MACHINERY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TITAN MACHINERY has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and TITAN MACHINERY go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and TITAN MACHINERY
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.83 times more return on investment than TITAN MACHINERY. However, INTERSHOP Communications Aktiengesellschaft is 1.21 times less risky than TITAN MACHINERY. It trades about 0.02 of its potential returns per unit of risk. TITAN MACHINERY is currently generating about -0.03 per unit of risk. If you would invest 165.00 in INTERSHOP Communications Aktiengesellschaft on September 4, 2024 and sell it today you would earn a total of 15.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. TITAN MACHINERY
Performance |
| Timeline |
| INTERSHOP Communications |
| TITAN MACHINERY |
INTERSHOP Communications and TITAN MACHINERY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and TITAN MACHINERY
The main advantage of trading using opposite INTERSHOP Communications and TITAN MACHINERY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, TITAN MACHINERY 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 TITAN MACHINERY will offset losses from the drop in TITAN MACHINERY's long position.| INTERSHOP Communications vs. Rocket Internet SE | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech |
| TITAN MACHINERY vs. TOTAL GABON | TITAN MACHINERY vs. Walgreens Boots Alliance | TITAN MACHINERY vs. Peak Resources Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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