Correlation Between INTERSHOP Communications and CDN IMPERIAL
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and CDN IMPERIAL BANK, you can compare the effects of market volatilities on INTERSHOP Communications and CDN IMPERIAL 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 CDN IMPERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and CDN IMPERIAL.
Diversification Opportunities for INTERSHOP Communications and CDN IMPERIAL
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and CDN is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and CDN IMPERIAL BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN IMPERIAL BANK 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 CDN IMPERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN IMPERIAL BANK has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and CDN IMPERIAL go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and CDN IMPERIAL
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the CDN IMPERIAL. In addition to that, INTERSHOP Communications is 1.6 times more volatile than CDN IMPERIAL BANK. It trades about -0.27 of its total potential returns per unit of risk. CDN IMPERIAL BANK is currently generating about 0.14 per unit of volatility. If you would invest 6,039 in CDN IMPERIAL BANK on September 15, 2024 and sell it today you would earn a total of 220.00 from holding CDN IMPERIAL BANK or generate 3.64% 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. CDN IMPERIAL BANK
Performance |
| Timeline |
| INTERSHOP Communications |
| CDN IMPERIAL BANK |
INTERSHOP Communications and CDN IMPERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and CDN IMPERIAL
The main advantage of trading using opposite INTERSHOP Communications and CDN IMPERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, CDN IMPERIAL 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 CDN IMPERIAL will offset losses from the drop in CDN IMPERIAL's long position.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
| CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL vs. Apple Inc | CDN IMPERIAL 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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