Correlation Between INTERSHOP Communications and China BlueChemical
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and China BlueChemical, you can compare the effects of market volatilities on INTERSHOP Communications and China BlueChemical 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 China BlueChemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and China BlueChemical.
Diversification Opportunities for INTERSHOP Communications and China BlueChemical
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between INTERSHOP and China is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and China BlueChemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China BlueChemical 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 China BlueChemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China BlueChemical has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and China BlueChemical go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and China BlueChemical
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.52 times more return on investment than China BlueChemical. However, INTERSHOP Communications Aktiengesellschaft is 1.93 times less risky than China BlueChemical. It trades about -0.01 of its potential returns per unit of risk. China BlueChemical is currently generating about -0.01 per unit of risk. If you would invest 197.00 in INTERSHOP Communications Aktiengesellschaft on September 3, 2024 and sell it today you would lose (12.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. China BlueChemical
Performance |
| Timeline |
| INTERSHOP Communications |
| China BlueChemical |
INTERSHOP Communications and China BlueChemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and China BlueChemical
The main advantage of trading using opposite INTERSHOP Communications and China BlueChemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, China BlueChemical 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 China BlueChemical will offset losses from the drop in China BlueChemical'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 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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