Correlation Between INTERSHOP Communications and CAIRN HOMES
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and CAIRN HOMES EO, you can compare the effects of market volatilities on INTERSHOP Communications and CAIRN HOMES 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 CAIRN HOMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and CAIRN HOMES.
Diversification Opportunities for INTERSHOP Communications and CAIRN HOMES
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and CAIRN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and CAIRN HOMES EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIRN HOMES EO 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 CAIRN HOMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIRN HOMES EO has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and CAIRN HOMES go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and CAIRN HOMES
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.8 times more return on investment than CAIRN HOMES. However, INTERSHOP Communications Aktiengesellschaft is 1.24 times less risky than CAIRN HOMES. It trades about 0.07 of its potential returns per unit of risk. CAIRN HOMES EO is currently generating about -0.16 per unit of risk. If you would invest 175.00 in INTERSHOP Communications Aktiengesellschaft on November 3, 2024 and sell it today you would earn a total of 5.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 2.86% 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. CAIRN HOMES EO
Performance |
| Timeline |
| INTERSHOP Communications |
| CAIRN HOMES EO |
INTERSHOP Communications and CAIRN HOMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and CAIRN HOMES
The main advantage of trading using opposite INTERSHOP Communications and CAIRN HOMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, CAIRN HOMES 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 CAIRN HOMES will offset losses from the drop in CAIRN HOMES's long position.| INTERSHOP Communications vs. BAKED GAMES SA | INTERSHOP Communications vs. ECHO INVESTMENT ZY | INTERSHOP Communications vs. OURGAME INTHOLDL 00005 | INTERSHOP Communications vs. SEI INVESTMENTS |
| CAIRN HOMES vs. Commercial Vehicle Group | CAIRN HOMES vs. TERADATA | CAIRN HOMES vs. Nomad Foods | CAIRN HOMES vs. Fevertree Drinks PLC |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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