Correlation Between INTERSHOP Communications and Commonwealth Bank
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Commonwealth Bank of, you can compare the effects of market volatilities on INTERSHOP Communications and Commonwealth Bank 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 Commonwealth Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Commonwealth Bank.
Diversification Opportunities for INTERSHOP Communications and Commonwealth Bank
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Commonwealth is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Commonwealth Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth 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 Commonwealth Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Bank has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Commonwealth Bank go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Commonwealth Bank
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Commonwealth Bank. In addition to that, INTERSHOP Communications is 1.5 times more volatile than Commonwealth Bank of. It trades about -0.27 of its total potential returns per unit of risk. Commonwealth Bank of is currently generating about 0.09 per unit of volatility. If you would invest 9,327 in Commonwealth Bank of on September 15, 2024 and sell it today you would earn a total of 217.00 from holding Commonwealth Bank of or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Commonwealth Bank of
Performance |
| Timeline |
| INTERSHOP Communications |
| Commonwealth Bank |
INTERSHOP Communications and Commonwealth Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Commonwealth Bank
The main advantage of trading using opposite INTERSHOP Communications and Commonwealth Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Commonwealth Bank 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 Commonwealth Bank will offset losses from the drop in Commonwealth Bank'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 |
| Commonwealth Bank vs. Superior Plus Corp | Commonwealth Bank vs. SIVERS SEMICONDUCTORS AB | Commonwealth Bank vs. CHINA HUARONG ENERHD 50 | Commonwealth Bank vs. NORDIC HALIBUT AS |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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