Correlation Between INTERSHOP Communications and Deutsche Telekom
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Deutsche Telekom AG, you can compare the effects of market volatilities on INTERSHOP Communications and Deutsche Telekom 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 Deutsche Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Deutsche Telekom.
Diversification Opportunities for INTERSHOP Communications and Deutsche Telekom
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Deutsche is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Deutsche Telekom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Telekom 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 Deutsche Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Telekom has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Deutsche Telekom go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Deutsche Telekom
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Deutsche Telekom. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.58 times less risky than Deutsche Telekom. The stock trades about -0.25 of its potential returns per unit of risk. The Deutsche Telekom AG is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,780 in Deutsche Telekom AG on September 3, 2024 and sell it today you would earn a total of 220.00 from holding Deutsche Telekom AG or generate 7.91% 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. Deutsche Telekom AG
Performance |
| Timeline |
| INTERSHOP Communications |
| Deutsche Telekom |
INTERSHOP Communications and Deutsche Telekom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Deutsche Telekom
The main advantage of trading using opposite INTERSHOP Communications and Deutsche Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Deutsche Telekom 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 Deutsche Telekom will offset losses from the drop in Deutsche Telekom's long position.| INTERSHOP Communications vs. Neinor Homes SA | INTERSHOP Communications vs. STRAYER EDUCATION | INTERSHOP Communications vs. Aedas Homes SA | INTERSHOP Communications vs. Corporate Office Properties |
| Deutsche Telekom vs. ADRIATIC METALS LS 013355 | Deutsche Telekom vs. ARDAGH METAL PACDL 0001 | Deutsche Telekom vs. United Natural Foods | Deutsche Telekom vs. Kaiser Aluminum |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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