Correlation Between INTERSHOP Communications and Shenandoah Telecommunicatio
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Shenandoah Telecommunications, you can compare the effects of market volatilities on INTERSHOP Communications and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Shenandoah Telecommunicatio.
Diversification Opportunities for INTERSHOP Communications and Shenandoah Telecommunicatio
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Shenandoah is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Shenandoah Telecommunicatio go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Shenandoah Telecommunicatio
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 1.53 times more return on investment than Shenandoah Telecommunicatio. However, INTERSHOP Communications is 1.53 times more volatile than Shenandoah Telecommunications. It trades about 0.2 of its potential returns per unit of risk. Shenandoah Telecommunications is currently generating about 0.0 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 32.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Shenandoah Telecommunications
Performance |
| Timeline |
| INTERSHOP Communications |
| Shenandoah Telecommunicatio |
INTERSHOP Communications and Shenandoah Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Shenandoah Telecommunicatio
The main advantage of trading using opposite INTERSHOP Communications and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's 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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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