Correlation Between INTERSHOP Communications and Ming Le
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Ming Le Sports, you can compare the effects of market volatilities on INTERSHOP Communications and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Ming Le.
Diversification Opportunities for INTERSHOP Communications and Ming Le
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Ming is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports 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 Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Ming Le go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Ming Le
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Ming Le. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.67 times less risky than Ming Le. The stock trades about -0.02 of its potential returns per unit of risk. The Ming Le Sports is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 104.00 in Ming Le Sports on August 31, 2024 and sell it today you would earn a total of 35.00 from holding Ming Le Sports or generate 33.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Ming Le Sports
Performance |
| Timeline |
| INTERSHOP Communications |
| Ming Le Sports |
INTERSHOP Communications and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Ming Le
The main advantage of trading using opposite INTERSHOP Communications and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le's long position.| INTERSHOP Communications vs. Aegean Airlines SA | INTERSHOP Communications vs. INTER CARS SA | INTERSHOP Communications vs. Grupo Carso SAB | INTERSHOP Communications vs. United Airlines Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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