Correlation Between INTERSHOP Communications and Man Wah
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Man Wah Holdings, you can compare the effects of market volatilities on INTERSHOP Communications and Man Wah 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 Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Man Wah.
Diversification Opportunities for INTERSHOP Communications and Man Wah
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and Man is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings 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 Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Man Wah go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Man Wah
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.67 times more return on investment than Man Wah. However, INTERSHOP Communications Aktiengesellschaft is 1.5 times less risky than Man Wah. It trades about -0.01 of its potential returns per unit of risk. Man Wah Holdings is currently generating about -0.03 per unit of risk. If you would invest 180.00 in INTERSHOP Communications Aktiengesellschaft on October 15, 2024 and sell it today you would lose (1.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Man Wah Holdings
Performance |
| Timeline |
| INTERSHOP Communications |
| Man Wah Holdings |
INTERSHOP Communications and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Man Wah
The main advantage of trading using opposite INTERSHOP Communications and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and Man Wah Holdings 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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