Correlation Between INTERSHOP Communications and Loblaw Companies
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Loblaw Companies Limited, you can compare the effects of market volatilities on INTERSHOP Communications and Loblaw Companies 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 Loblaw Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Loblaw Companies.
Diversification Opportunities for INTERSHOP Communications and Loblaw Companies
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Loblaw is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Loblaw Companies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loblaw Companies 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 Loblaw Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loblaw Companies has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Loblaw Companies go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Loblaw Companies
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Loblaw Companies. In addition to that, INTERSHOP Communications is 2.23 times more volatile than Loblaw Companies Limited. It trades about -0.01 of its total potential returns per unit of risk. Loblaw Companies Limited is currently generating about 0.08 per unit of volatility. If you would invest 8,061 in Loblaw Companies Limited on September 12, 2024 and sell it today you would earn a total of 4,739 from holding Loblaw Companies Limited or generate 58.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Loblaw Companies Limited
Performance |
| Timeline |
| INTERSHOP Communications |
| Loblaw Companies |
INTERSHOP Communications and Loblaw Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Loblaw Companies
The main advantage of trading using opposite INTERSHOP Communications and Loblaw Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Loblaw Companies 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 Loblaw Companies will offset losses from the drop in Loblaw Companies' long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| Loblaw Companies vs. Woolworths Group Limited | Loblaw Companies vs. Superior Plus Corp | Loblaw Companies vs. SIVERS SEMICONDUCTORS AB | Loblaw Companies vs. Norsk Hydro ASA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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