Correlation Between INTERSHOP Communications and AVITA Medical
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and AVITA Medical, you can compare the effects of market volatilities on INTERSHOP Communications and AVITA Medical 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 AVITA Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and AVITA Medical.
Diversification Opportunities for INTERSHOP Communications and AVITA Medical
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and AVITA is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and AVITA Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVITA Medical 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 AVITA Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVITA Medical has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and AVITA Medical go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and AVITA Medical
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the AVITA Medical. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.31 times less risky than AVITA Medical. The stock trades about -0.23 of its potential returns per unit of risk. The AVITA Medical is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 252.00 in AVITA Medical on September 25, 2024 and sell it today you would lose (26.00) from holding AVITA Medical or give up 10.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. AVITA Medical
Performance |
Timeline |
INTERSHOP Communications |
AVITA Medical |
INTERSHOP Communications and AVITA Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and AVITA Medical
The main advantage of trading using opposite INTERSHOP Communications and AVITA Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, AVITA Medical 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 AVITA Medical will offset losses from the drop in AVITA Medical's long position.INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Nemetschek AG ON | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. TeamViewer AG |
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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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