Correlation Between INTERSHOP Communications and Advanced Medical
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Advanced Medical Solutions, you can compare the effects of market volatilities on INTERSHOP Communications and Advanced Medical 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 Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Advanced Medical.
Diversification Opportunities for INTERSHOP Communications and Advanced Medical
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Advanced is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol 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 Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Advanced Medical go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Advanced Medical
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.77 times more return on investment than Advanced Medical. However, INTERSHOP Communications Aktiengesellschaft is 1.3 times less risky than Advanced Medical. It trades about -0.11 of its potential returns per unit of risk. Advanced Medical Solutions is currently generating about -0.14 per unit of risk. If you would invest 190.00 in INTERSHOP Communications Aktiengesellschaft on October 10, 2024 and sell it today you would lose (10.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Advanced Medical Solutions
Performance |
| Timeline |
| INTERSHOP Communications |
| Advanced Medical Sol |
INTERSHOP Communications and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Advanced Medical
The main advantage of trading using opposite INTERSHOP Communications and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| INTERSHOP Communications vs. ZhongAn Online P | INTERSHOP Communications vs. Lamar Advertising | INTERSHOP Communications vs. PREMIER FOODS | INTERSHOP Communications vs. INDOFOOD AGRI RES |
| Advanced Medical vs. HEALTHSTREAM | Advanced Medical vs. NIGHTINGALE HEALTH EO | Advanced Medical vs. CARDINAL HEALTH | Advanced Medical vs. Perdoceo Education |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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