Correlation Between INTERSHOP Communications and Consolidated Communications
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Consolidated Communications Holdings, you can compare the effects of market volatilities on INTERSHOP Communications and Consolidated Communications 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 Consolidated Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Consolidated Communications.
Diversification Opportunities for INTERSHOP Communications and Consolidated Communications
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Consolidated is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Consolidated Communications Ho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Communications 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 Consolidated Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Communications has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Consolidated Communications go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Consolidated Communications
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Consolidated Communications. In addition to that, INTERSHOP Communications is 2.28 times more volatile than Consolidated Communications Holdings. It trades about 0.0 of its total potential returns per unit of risk. Consolidated Communications Holdings is currently generating about 0.09 per unit of volatility. If you would invest 402.00 in Consolidated Communications Holdings on August 29, 2024 and sell it today you would earn a total of 42.00 from holding Consolidated Communications Holdings or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Consolidated Communications Ho
Performance |
| Timeline |
| INTERSHOP Communications |
| Consolidated Communications |
INTERSHOP Communications and Consolidated Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Consolidated Communications
The main advantage of trading using opposite INTERSHOP Communications and Consolidated Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Consolidated Communications 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 Consolidated Communications will offset losses from the drop in Consolidated Communications' long position.| INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. Fastly Inc |
| Consolidated Communications vs. Verizon Communications | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. ATT Inc | Consolidated Communications vs. Deutsche Telekom AG |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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