Correlation Between INTERSHOP Communications and Direct Line
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Direct Line Insurance, you can compare the effects of market volatilities on INTERSHOP Communications and Direct Line 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 Direct Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Direct Line.
Diversification Opportunities for INTERSHOP Communications and Direct Line
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Direct is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Direct Line Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Direct Line Insurance 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 Direct Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Direct Line Insurance has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Direct Line go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Direct Line
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 4.27 times more return on investment than Direct Line. However, INTERSHOP Communications is 4.27 times more volatile than Direct Line Insurance. It trades about 0.14 of its potential returns per unit of risk. Direct Line Insurance is currently generating about 0.2 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Direct Line Insurance
Performance |
| Timeline |
| INTERSHOP Communications |
| Direct Line Insurance |
INTERSHOP Communications and Direct Line Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Direct Line
The main advantage of trading using opposite INTERSHOP Communications and Direct Line positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Direct Line 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 Direct Line will offset losses from the drop in Direct Line'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 |
| Direct Line vs. Mitsui Chemicals | Direct Line vs. United Natural Foods | Direct Line vs. Nok Airlines PCL | Direct Line vs. PLANT VEDA FOODS |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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