Correlation Between INTERSHOP Communications and Allegheny Technologies
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on INTERSHOP Communications and Allegheny Technologies 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 Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Allegheny Technologies.
Diversification Opportunities for INTERSHOP Communications and Allegheny Technologies
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and Allegheny is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Allegheny Technologies go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Allegheny Technologies
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Allegheny Technologies. In addition to that, INTERSHOP Communications is 1.1 times more volatile than Allegheny Technologies Incorporated. It trades about -0.1 of its total potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.3 per unit of volatility. If you would invest 5,230 in Allegheny Technologies Incorporated on October 24, 2024 and sell it today you would earn a total of 392.00 from holding Allegheny Technologies Incorporated or generate 7.5% 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. Allegheny Technologies Incorpo
Performance |
| Timeline |
| INTERSHOP Communications |
| Allegheny Technologies |
INTERSHOP Communications and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Allegheny Technologies
The main advantage of trading using opposite INTERSHOP Communications and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| INTERSHOP Communications vs. Retail Estates NV | INTERSHOP Communications vs. GUARDANT HEALTH CL | INTERSHOP Communications vs. Tencent Music Entertainment | INTERSHOP Communications vs. Molina Healthcare |
| Allegheny Technologies vs. Apple Inc | Allegheny Technologies vs. Apple Inc | Allegheny Technologies vs. Apple Inc | Allegheny Technologies vs. Apple Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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