Correlation Between INTERSHOP Communications and Beijing MediaLimited
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Beijing Media, you can compare the effects of market volatilities on INTERSHOP Communications and Beijing MediaLimited 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 Beijing MediaLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Beijing MediaLimited.
Diversification Opportunities for INTERSHOP Communications and Beijing MediaLimited
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INTERSHOP and Beijing is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Beijing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing MediaLimited 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 Beijing MediaLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing MediaLimited has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Beijing MediaLimited go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Beijing MediaLimited
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 2.06 times more return on investment than Beijing MediaLimited. However, INTERSHOP Communications is 2.06 times more volatile than Beijing Media. It trades about 0.14 of its potential returns per unit of risk. Beijing Media is currently generating about 0.13 per unit of risk. If you would invest 178.00 in INTERSHOP Communications Aktiengesellschaft on December 1, 2024 and sell it today you would earn a total of 22.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Beijing Media
Performance |
| Timeline |
| INTERSHOP Communications |
| Beijing MediaLimited |
INTERSHOP Communications and Beijing MediaLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Beijing MediaLimited
The main advantage of trading using opposite INTERSHOP Communications and Beijing MediaLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Beijing MediaLimited 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 Beijing MediaLimited will offset losses from the drop in Beijing MediaLimited's long position.| INTERSHOP Communications vs. OFFICE DEPOT | INTERSHOP Communications vs. alstria office REIT AG | INTERSHOP Communications vs. CAIRN HOMES EO | INTERSHOP Communications vs. Neinor Homes SA |
| Beijing MediaLimited vs. Publicis Groupe SA | Beijing MediaLimited vs. Omnicom Group | Beijing MediaLimited vs. Superior Plus Corp | Beijing MediaLimited vs. Origin Agritech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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