Correlation Between INTERSHOP Communications and KCE EL
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and KCE EL PCL, you can compare the effects of market volatilities on INTERSHOP Communications and KCE EL 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 KCE EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and KCE EL.
Diversification Opportunities for INTERSHOP Communications and KCE EL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between INTERSHOP and KCE is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and KCE EL PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCE EL PCL 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 KCE EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCE EL PCL has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and KCE EL go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and KCE EL
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.67 times more return on investment than KCE EL. However, INTERSHOP Communications Aktiengesellschaft is 1.5 times less risky than KCE EL. It trades about -0.04 of its potential returns per unit of risk. KCE EL PCL is currently generating about -0.53 per unit of risk. If you would invest 193.00 in INTERSHOP Communications Aktiengesellschaft on September 12, 2024 and sell it today you would lose (3.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. KCE EL PCL
Performance |
| Timeline |
| INTERSHOP Communications |
| KCE EL PCL |
INTERSHOP Communications and KCE EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and KCE EL
The main advantage of trading using opposite INTERSHOP Communications and KCE EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, KCE EL 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 KCE EL will offset losses from the drop in KCE EL'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 |
| KCE EL vs. American Homes 4 | KCE EL vs. Fukuyama Transporting Co | KCE EL vs. Aedas Homes SA | KCE EL vs. TITANIUM TRANSPORTGROUP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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