Correlation Between INTERSHOP Communications and Algonquin Power
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Algonquin Power Utilities, you can compare the effects of market volatilities on INTERSHOP Communications and Algonquin Power 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 Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Algonquin Power.
Diversification Opportunities for INTERSHOP Communications and Algonquin Power
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERSHOP and Algonquin is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities 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 Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Algonquin Power go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Algonquin Power
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 1.06 times more return on investment than Algonquin Power. However, INTERSHOP Communications is 1.06 times more volatile than Algonquin Power Utilities. It trades about -0.01 of its potential returns per unit of risk. Algonquin Power Utilities is currently generating about -0.08 per unit of risk. If you would invest 197.00 in INTERSHOP Communications Aktiengesellschaft on September 3, 2024 and sell it today you would lose (12.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Algonquin Power Utilities
Performance |
| Timeline |
| INTERSHOP Communications |
| Algonquin Power Utilities |
INTERSHOP Communications and Algonquin Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Algonquin Power
The main advantage of trading using opposite INTERSHOP Communications and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power'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 |
| Algonquin Power vs. Treasury Wine Estates | Algonquin Power vs. X FAB Silicon Foundries | Algonquin Power vs. Silicon Motion Technology | Algonquin Power vs. CVW CLEANTECH INC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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