Correlation Between INTERSHOP Communications and Aristocrat Leisure
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Aristocrat Leisure Limited, you can compare the effects of market volatilities on INTERSHOP Communications and Aristocrat Leisure 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 Aristocrat Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Aristocrat Leisure.
Diversification Opportunities for INTERSHOP Communications and Aristocrat Leisure
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Aristocrat is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Aristocrat Leisure Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristocrat Leisure 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 Aristocrat Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristocrat Leisure has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Aristocrat Leisure go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Aristocrat Leisure
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Aristocrat Leisure. In addition to that, INTERSHOP Communications is 1.23 times more volatile than Aristocrat Leisure Limited. It trades about -0.16 of its total potential returns per unit of risk. Aristocrat Leisure Limited is currently generating about 0.18 per unit of volatility. If you would invest 3,880 in Aristocrat Leisure Limited on September 13, 2024 and sell it today you would earn a total of 220.00 from holding Aristocrat Leisure Limited or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Aristocrat Leisure Limited
Performance |
| Timeline |
| INTERSHOP Communications |
| Aristocrat Leisure |
INTERSHOP Communications and Aristocrat Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Aristocrat Leisure
The main advantage of trading using opposite INTERSHOP Communications and Aristocrat Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Aristocrat Leisure 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 Aristocrat Leisure will offset losses from the drop in Aristocrat Leisure's long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| Aristocrat Leisure vs. Carnegie Clean Energy | Aristocrat Leisure vs. Major Drilling Group | Aristocrat Leisure vs. ULTRA CLEAN HLDGS | Aristocrat Leisure vs. URBAN OUTFITTERS |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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