Correlation Between INTERSHOP Communications and Hexcel
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Hexcel, you can compare the effects of market volatilities on INTERSHOP Communications and Hexcel 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 Hexcel. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Hexcel.
Diversification Opportunities for INTERSHOP Communications and Hexcel
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Hexcel is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Hexcel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexcel 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 Hexcel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexcel has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Hexcel go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Hexcel
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 1.45 times more return on investment than Hexcel. However, INTERSHOP Communications is 1.45 times more volatile than Hexcel. It trades about 0.1 of its potential returns per unit of risk. Hexcel is currently generating about 0.09 per unit of risk. If you would invest 165.00 in INTERSHOP Communications Aktiengesellschaft on September 12, 2024 and sell it today you would earn a total of 25.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 15.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Hexcel
Performance |
| Timeline |
| INTERSHOP Communications |
| Hexcel |
INTERSHOP Communications and Hexcel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Hexcel
The main advantage of trading using opposite INTERSHOP Communications and Hexcel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Hexcel 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 Hexcel will offset losses from the drop in Hexcel's long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| Hexcel vs. Verizon Communications | Hexcel vs. Iridium Communications | Hexcel vs. CHINA TELECOM H | Hexcel vs. Citic Telecom International |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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