Correlation Between INTERSHOP Communications and GRENKELEASING
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and GRENKELEASING Dusseldorf, you can compare the effects of market volatilities on INTERSHOP Communications and GRENKELEASING 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 GRENKELEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and GRENKELEASING.
Diversification Opportunities for INTERSHOP Communications and GRENKELEASING
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and GRENKELEASING is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and GRENKELEASING Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRENKELEASING Duss 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 GRENKELEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRENKELEASING Duss has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and GRENKELEASING go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and GRENKELEASING
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the GRENKELEASING. In addition to that, INTERSHOP Communications is 1.16 times more volatile than GRENKELEASING Dusseldorf. It trades about -0.02 of its total potential returns per unit of risk. GRENKELEASING Dusseldorf is currently generating about -0.02 per unit of volatility. If you would invest 2,371 in GRENKELEASING Dusseldorf on October 11, 2024 and sell it today you would lose (675.00) from holding GRENKELEASING Dusseldorf or give up 28.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. GRENKELEASING Dusseldorf
Performance |
| Timeline |
| INTERSHOP Communications |
| GRENKELEASING Duss |
INTERSHOP Communications and GRENKELEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and GRENKELEASING
The main advantage of trading using opposite INTERSHOP Communications and GRENKELEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, GRENKELEASING 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 GRENKELEASING will offset losses from the drop in GRENKELEASING's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and GRENKELEASING Dusseldorf pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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