Correlation Between INTERSHOP Communications and SOEDER SPORTFISKE
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and SOEDER SPORTFISKE AB, you can compare the effects of market volatilities on INTERSHOP Communications and SOEDER SPORTFISKE 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 SOEDER SPORTFISKE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and SOEDER SPORTFISKE.
Diversification Opportunities for INTERSHOP Communications and SOEDER SPORTFISKE
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and SOEDER is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and SOEDER SPORTFISKE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOEDER SPORTFISKE 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 SOEDER SPORTFISKE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOEDER SPORTFISKE has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and SOEDER SPORTFISKE go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and SOEDER SPORTFISKE
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the SOEDER SPORTFISKE. In addition to that, INTERSHOP Communications is 1.96 times more volatile than SOEDER SPORTFISKE AB. It trades about -0.16 of its total potential returns per unit of risk. SOEDER SPORTFISKE AB is currently generating about -0.11 per unit of volatility. If you would invest 223.00 in SOEDER SPORTFISKE AB on October 11, 2024 and sell it today you would lose (6.00) from holding SOEDER SPORTFISKE AB or give up 2.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. SOEDER SPORTFISKE AB
Performance |
| Timeline |
| INTERSHOP Communications |
| SOEDER SPORTFISKE |
INTERSHOP Communications and SOEDER SPORTFISKE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and SOEDER SPORTFISKE
The main advantage of trading using opposite INTERSHOP Communications and SOEDER SPORTFISKE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, SOEDER SPORTFISKE 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 SOEDER SPORTFISKE will offset losses from the drop in SOEDER SPORTFISKE's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and SOEDER SPORTFISKE AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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