Correlation Between INTERSHOP Communications and LG Electronics
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and LG Electronics, you can compare the effects of market volatilities on INTERSHOP Communications and LG Electronics 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 LG Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and LG Electronics.
Diversification Opportunities for INTERSHOP Communications and LG Electronics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and LGLG is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and LG Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Electronics 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 LG Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Electronics has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and LG Electronics go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and LG Electronics
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the LG Electronics. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.19 times less risky than LG Electronics. The stock trades about -0.02 of its potential returns per unit of risk. The LG Electronics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,383 in LG Electronics on September 24, 2024 and sell it today you would lose (63.00) from holding LG Electronics or give up 4.56% 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. LG Electronics
Performance |
| Timeline |
| INTERSHOP Communications |
| LG Electronics |
INTERSHOP Communications and LG Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and LG Electronics
The main advantage of trading using opposite INTERSHOP Communications and LG Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, LG Electronics 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 LG Electronics will offset losses from the drop in LG Electronics' long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Uber Technologies | INTERSHOP Communications vs. Nemetschek AG ON |
| LG Electronics vs. Apple Inc | LG Electronics vs. Apple Inc | LG Electronics vs. Apple Inc | LG Electronics vs. Apple Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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