Correlation Between INTERSHOP Communications and EAGLE MATERIALS
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and EAGLE MATERIALS, you can compare the effects of market volatilities on INTERSHOP Communications and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and EAGLE MATERIALS.
Diversification Opportunities for INTERSHOP Communications and EAGLE MATERIALS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and EAGLE is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and EAGLE MATERIALS
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the EAGLE MATERIALS. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.89 times less risky than EAGLE MATERIALS. The stock trades about -0.25 of its potential returns per unit of risk. The EAGLE MATERIALS is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 26,400 in EAGLE MATERIALS on September 2, 2024 and sell it today you would earn a total of 2,800 from holding EAGLE MATERIALS or generate 10.61% 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. EAGLE MATERIALS
Performance |
| Timeline |
| INTERSHOP Communications |
| EAGLE MATERIALS |
INTERSHOP Communications and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and EAGLE MATERIALS
The main advantage of trading using opposite INTERSHOP Communications and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.| INTERSHOP Communications vs. GRIFFIN MINING LTD | INTERSHOP Communications vs. UMC Electronics Co | INTERSHOP Communications vs. MCEWEN MINING INC | INTERSHOP Communications vs. ELECTRONIC ARTS |
| EAGLE MATERIALS vs. BJs Wholesale Club | EAGLE MATERIALS vs. Caseys General Stores | EAGLE MATERIALS vs. American Public Education | EAGLE MATERIALS vs. Fast Retailing Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |