Correlation Between INTERSHOP Communications and Associated British
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Associated British Foods, you can compare the effects of market volatilities on INTERSHOP Communications and Associated British 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 Associated British. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Associated British.
Diversification Opportunities for INTERSHOP Communications and Associated British
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Associated is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Associated British Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated British Foods 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 Associated British. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated British Foods has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Associated British go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Associated British
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Associated British. In addition to that, INTERSHOP Communications is 1.83 times more volatile than Associated British Foods. It trades about -0.11 of its total potential returns per unit of risk. Associated British Foods is currently generating about 0.02 per unit of volatility. If you would invest 2,550 in Associated British Foods on September 20, 2024 and sell it today you would earn a total of 7.00 from holding Associated British Foods or generate 0.27% 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. Associated British Foods
Performance |
| Timeline |
| INTERSHOP Communications |
| Associated British Foods |
INTERSHOP Communications and Associated British Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Associated British
The main advantage of trading using opposite INTERSHOP Communications and Associated British positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Associated British 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 Associated British will offset losses from the drop in Associated British's long position.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
| Associated British vs. CyberArk Software | Associated British vs. EHEALTH | Associated British vs. YOOMA WELLNESS INC | Associated British vs. ATRYS HEALTH SA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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