Correlation Between INTERSHOP Communications and TROPHY GAMES
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and TROPHY GAMES DEV, you can compare the effects of market volatilities on INTERSHOP Communications and TROPHY GAMES 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 TROPHY GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and TROPHY GAMES.
Diversification Opportunities for INTERSHOP Communications and TROPHY GAMES
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and TROPHY is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and TROPHY GAMES DEV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROPHY GAMES DEV 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 TROPHY GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROPHY GAMES DEV has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and TROPHY GAMES go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and TROPHY GAMES
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.63 times more return on investment than TROPHY GAMES. However, INTERSHOP Communications Aktiengesellschaft is 1.58 times less risky than TROPHY GAMES. It trades about 0.01 of its potential returns per unit of risk. TROPHY GAMES DEV is currently generating about -0.21 per unit of risk. If you would invest 193.00 in INTERSHOP Communications Aktiengesellschaft on August 29, 2024 and sell it today you would earn a total of 0.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. TROPHY GAMES DEV
Performance |
| Timeline |
| INTERSHOP Communications |
| TROPHY GAMES DEV |
INTERSHOP Communications and TROPHY GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and TROPHY GAMES
The main advantage of trading using opposite INTERSHOP Communications and TROPHY GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, TROPHY GAMES 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 TROPHY GAMES will offset losses from the drop in TROPHY GAMES's long position.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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