Correlation Between INTERSHOP Communications and HSBC Holdings
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and HSBC Holdings plc, you can compare the effects of market volatilities on INTERSHOP Communications and HSBC Holdings 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 HSBC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and HSBC Holdings.
Diversification Opportunities for INTERSHOP Communications and HSBC Holdings
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INTERSHOP and HSBC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and HSBC Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC Holdings plc 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 HSBC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC Holdings plc has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and HSBC Holdings go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and HSBC Holdings
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the HSBC Holdings. In addition to that, INTERSHOP Communications is 1.16 times more volatile than HSBC Holdings plc. It trades about -0.01 of its total potential returns per unit of risk. HSBC Holdings plc is currently generating about 0.05 per unit of volatility. If you would invest 3,919 in HSBC Holdings plc on September 3, 2024 and sell it today you would earn a total of 481.00 from holding HSBC Holdings plc or generate 12.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. HSBC Holdings plc
Performance |
| Timeline |
| INTERSHOP Communications |
| HSBC Holdings plc |
INTERSHOP Communications and HSBC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and HSBC Holdings
The main advantage of trading using opposite INTERSHOP Communications and HSBC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, HSBC Holdings 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 HSBC Holdings will offset losses from the drop in HSBC Holdings' 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 |
| HSBC Holdings vs. CeoTronics AG | HSBC Holdings vs. Cogent Communications Holdings | HSBC Holdings vs. SHIP HEALTHCARE HLDGINC | HSBC Holdings vs. INTERSHOP Communications Aktiengesellschaft |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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