Correlation Between INTERSHOP Communications and Richardson Electronics
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Richardson Electronics, you can compare the effects of market volatilities on INTERSHOP Communications and Richardson Electronics 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 Richardson Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Richardson Electronics.
Diversification Opportunities for INTERSHOP Communications and Richardson Electronics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Richardson is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Richardson Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Richardson Electronics 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 Richardson Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Richardson Electronics has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Richardson Electronics go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Richardson Electronics
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 3.28 times more return on investment than Richardson Electronics. However, INTERSHOP Communications is 3.28 times more volatile than Richardson Electronics. It trades about 0.15 of its potential returns per unit of risk. Richardson Electronics is currently generating about -0.14 per unit of risk. If you would invest 176.00 in INTERSHOP Communications Aktiengesellschaft on November 28, 2024 and sell it today you would earn a total of 24.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Richardson Electronics
Performance |
| Timeline |
| INTERSHOP Communications |
| Richardson Electronics |
INTERSHOP Communications and Richardson Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Richardson Electronics
The main advantage of trading using opposite INTERSHOP Communications and Richardson Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Richardson Electronics 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 Richardson Electronics will offset losses from the drop in Richardson Electronics' long position.| INTERSHOP Communications vs. BOVIS HOMES GROUP | INTERSHOP Communications vs. INDO RAMA SYNTHETIC | INTERSHOP Communications vs. X FAB Silicon Foundries | INTERSHOP Communications vs. ADDUS HOMECARE |
| Richardson Electronics vs. American Airlines Group | Richardson Electronics vs. CDL INVESTMENT | Richardson Electronics vs. China Southern Airlines | Richardson Electronics vs. Japan Asia Investment |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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