Correlation Between INTERSHOP Communications and USU Software
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and USU Software AG, you can compare the effects of market volatilities on INTERSHOP Communications and USU Software 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 USU Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and USU Software.
Diversification Opportunities for INTERSHOP Communications and USU Software
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and USU is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and USU Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USU Software AG 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 USU Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USU Software AG has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and USU Software go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and USU Software
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the USU Software. In addition to that, INTERSHOP Communications is 1.14 times more volatile than USU Software AG. It trades about -0.05 of its total potential returns per unit of risk. USU Software AG is currently generating about 0.08 per unit of volatility. If you would invest 1,810 in USU Software AG on October 25, 2024 and sell it today you would earn a total of 370.00 from holding USU Software AG or generate 20.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.19% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. USU Software AG
Performance |
| Timeline |
| INTERSHOP Communications |
| USU Software AG |
INTERSHOP Communications and USU Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and USU Software
The main advantage of trading using opposite INTERSHOP Communications and USU Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, USU Software 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 USU Software will offset losses from the drop in USU Software's long position.| INTERSHOP Communications vs. DAIDO METAL TD | INTERSHOP Communications vs. Nippon Light Metal | INTERSHOP Communications vs. TITANIUM TRANSPORTGROUP | INTERSHOP Communications vs. British American Tobacco |
| USU Software vs. GREENX METALS LTD | USU Software vs. Align Technology | USU Software vs. Charter Communications | USU Software vs. Zijin Mining Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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