Correlation Between INTERSHOP Communications and FIRSTRAND
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and FIRSTRAND, you can compare the effects of market volatilities on INTERSHOP Communications and FIRSTRAND 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 FIRSTRAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and FIRSTRAND.
Diversification Opportunities for INTERSHOP Communications and FIRSTRAND
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and FIRSTRAND is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and FIRSTRAND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRSTRAND 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 FIRSTRAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRSTRAND has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and FIRSTRAND go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and FIRSTRAND
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the FIRSTRAND. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 4.2 times less risky than FIRSTRAND. The stock trades about -0.02 of its potential returns per unit of risk. The FIRSTRAND is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 156.00 in FIRSTRAND on September 3, 2024 and sell it today you would earn a total of 240.00 from holding FIRSTRAND or generate 153.85% 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. FIRSTRAND
Performance |
| Timeline |
| INTERSHOP Communications |
| FIRSTRAND |
INTERSHOP Communications and FIRSTRAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and FIRSTRAND
The main advantage of trading using opposite INTERSHOP Communications and FIRSTRAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, FIRSTRAND 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 FIRSTRAND will offset losses from the drop in FIRSTRAND'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 |
| FIRSTRAND vs. GRUPO CARSO A1 | FIRSTRAND vs. United States Steel | FIRSTRAND vs. Geely Automobile Holdings | FIRSTRAND vs. CarsalesCom |
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 CEOs Directory module to screen CEOs from public companies around the world.
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