Correlation Between INTERSHOP Communications and PLAYTECH
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and PLAYTECH, you can compare the effects of market volatilities on INTERSHOP Communications and PLAYTECH 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 PLAYTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and PLAYTECH.
Diversification Opportunities for INTERSHOP Communications and PLAYTECH
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between INTERSHOP and PLAYTECH is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and PLAYTECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTECH 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 PLAYTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTECH has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and PLAYTECH go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and PLAYTECH
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the PLAYTECH. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.26 times less risky than PLAYTECH. The stock trades about -0.05 of its potential returns per unit of risk. The PLAYTECH is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 664.00 in PLAYTECH on October 25, 2024 and sell it today you would earn a total of 207.00 from holding PLAYTECH or generate 31.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. PLAYTECH
Performance |
| Timeline |
| INTERSHOP Communications |
| PLAYTECH |
INTERSHOP Communications and PLAYTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and PLAYTECH
The main advantage of trading using opposite INTERSHOP Communications and PLAYTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, PLAYTECH 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 PLAYTECH will offset losses from the drop in PLAYTECH'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 |
| PLAYTECH vs. BURLINGTON STORES | PLAYTECH vs. H2O Retailing | PLAYTECH vs. GALENA MINING LTD | PLAYTECH vs. Retail Estates NV |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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