Correlation Between INTERSHOP Communications and Iridium Communications
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Iridium Communications, you can compare the effects of market volatilities on INTERSHOP Communications and Iridium Communications 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 Iridium Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Iridium Communications.
Diversification Opportunities for INTERSHOP Communications and Iridium Communications
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and Iridium is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Iridium Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iridium Communications 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 Iridium Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iridium Communications has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Iridium Communications go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Iridium Communications
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.74 times more return on investment than Iridium Communications. However, INTERSHOP Communications Aktiengesellschaft is 1.35 times less risky than Iridium Communications. It trades about 0.03 of its potential returns per unit of risk. Iridium Communications is currently generating about -0.09 per unit of risk. If you would invest 174.00 in INTERSHOP Communications Aktiengesellschaft on October 23, 2024 and sell it today you would earn a total of 1.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 0.57% 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. Iridium Communications
Performance |
| Timeline |
| INTERSHOP Communications |
| Iridium Communications |
INTERSHOP Communications and Iridium Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Iridium Communications
The main advantage of trading using opposite INTERSHOP Communications and Iridium Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Iridium Communications 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 Iridium Communications will offset losses from the drop in Iridium Communications' long position.| INTERSHOP Communications vs. Japan Tobacco | INTERSHOP Communications vs. UPDATE SOFTWARE | INTERSHOP Communications vs. INTERNET INJPADR 1 | INTERSHOP Communications vs. VITEC SOFTWARE GROUP |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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