Correlation Between INTERSHOP Communications and Dow Jones
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Dow Jones Industrial, you can compare the effects of market volatilities on INTERSHOP Communications and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Dow Jones.
Diversification Opportunities for INTERSHOP Communications and Dow Jones
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Dow is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Dow Jones go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Dow Jones
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 22.22 times less return on investment than Dow Jones. In addition to that, INTERSHOP Communications is 1.63 times more volatile than Dow Jones Industrial. It trades about 0.01 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.26 per unit of volatility. If you would invest 4,238,757 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 247,274 from holding Dow Jones Industrial or generate 5.83% 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. Dow Jones Industrial
Performance |
| Timeline |
INTERSHOP Communications and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
INTERSHOP Communications Aktiengesellschaft
Pair trading matchups for INTERSHOP Communications
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with INTERSHOP Communications and Dow Jones
The main advantage of trading using opposite INTERSHOP Communications and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. Fastly Inc |
| Dow Jones vs. Kaltura | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. US Global Investors | Dow Jones vs. Analog Devices |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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