Correlation Between INTERSHOP Communications and PUMA SE
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and PUMA SE UNSPADR, you can compare the effects of market volatilities on INTERSHOP Communications and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and PUMA SE.
Diversification Opportunities for INTERSHOP Communications and PUMA SE
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and PUMA is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and PUMA SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE UNSPADR 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE UNSPADR has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and PUMA SE go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and PUMA SE
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.8 times more return on investment than PUMA SE. However, INTERSHOP Communications Aktiengesellschaft is 1.25 times less risky than PUMA SE. It trades about 0.04 of its potential returns per unit of risk. PUMA SE UNSPADR is currently generating about 0.0 per unit of risk. If you would invest 149.00 in INTERSHOP Communications Aktiengesellschaft on September 19, 2024 and sell it today you would earn a total of 34.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 22.82% 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. PUMA SE UNSPADR
Performance |
| Timeline |
| INTERSHOP Communications |
| PUMA SE UNSPADR |
INTERSHOP Communications and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and PUMA SE
The main advantage of trading using opposite INTERSHOP Communications and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE's long position.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
| PUMA SE vs. Verizon Communications | PUMA SE vs. COMPUTERSHARE | PUMA SE vs. GigaMedia | PUMA SE vs. INTERSHOP Communications Aktiengesellschaft |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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