Correlation Between INTERSHOP Communications and GOLD ROAD
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and GOLD ROAD RES, you can compare the effects of market volatilities on INTERSHOP Communications and GOLD ROAD 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 GOLD ROAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and GOLD ROAD.
Diversification Opportunities for INTERSHOP Communications and GOLD ROAD
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and GOLD is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and GOLD ROAD RES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GOLD ROAD RES 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 GOLD ROAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GOLD ROAD RES has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and GOLD ROAD go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and GOLD ROAD
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 1.22 times less return on investment than GOLD ROAD. But when comparing it to its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.08 times less risky than GOLD ROAD. It trades about 0.04 of its potential returns per unit of risk. GOLD ROAD RES is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 105.00 in GOLD ROAD RES on September 14, 2024 and sell it today you would earn a total of 25.00 from holding GOLD ROAD RES or generate 23.81% 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. GOLD ROAD RES
Performance |
| Timeline |
| INTERSHOP Communications |
| GOLD ROAD RES |
INTERSHOP Communications and GOLD ROAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and GOLD ROAD
The main advantage of trading using opposite INTERSHOP Communications and GOLD ROAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, GOLD ROAD 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 GOLD ROAD will offset losses from the drop in GOLD ROAD'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets |