Correlation Between INTERSHOP Communications and Nokia
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Nokia, you can compare the effects of market volatilities on INTERSHOP Communications and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Nokia.
Diversification Opportunities for INTERSHOP Communications and Nokia
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Nokia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Nokia go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Nokia
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Nokia. In addition to that, INTERSHOP Communications is 1.13 times more volatile than Nokia. It trades about -0.01 of its total potential returns per unit of risk. Nokia is currently generating about 0.01 per unit of volatility. If you would invest 405.00 in Nokia on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Nokia or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Nokia
Performance |
| Timeline |
| INTERSHOP Communications |
| Nokia |
INTERSHOP Communications and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Nokia
The main advantage of trading using opposite INTERSHOP Communications and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia'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 |
| Nokia vs. Zijin Mining Group | Nokia vs. CITIC Telecom International | Nokia vs. INTERSHOP Communications Aktiengesellschaft | Nokia vs. ADRIATIC METALS LS 013355 |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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