Correlation Between INTERSHOP Communications and SEKISUI CHEMICAL
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and SEKISUI CHEMICAL, you can compare the effects of market volatilities on INTERSHOP Communications and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and SEKISUI CHEMICAL.
Diversification Opportunities for INTERSHOP Communications and SEKISUI CHEMICAL
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between INTERSHOP and SEKISUI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and SEKISUI CHEMICAL
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 62.52 times less return on investment than SEKISUI CHEMICAL. But when comparing it to its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.1 times less risky than SEKISUI CHEMICAL. It trades about 0.01 of its potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,280 in SEKISUI CHEMICAL on August 29, 2024 and sell it today you would earn a total of 220.00 from holding SEKISUI CHEMICAL or generate 17.19% 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. SEKISUI CHEMICAL
Performance |
| Timeline |
| INTERSHOP Communications |
| SEKISUI CHEMICAL |
INTERSHOP Communications and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and SEKISUI CHEMICAL
The main advantage of trading using opposite INTERSHOP Communications and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB |
| SEKISUI CHEMICAL vs. Singapore Telecommunications Limited | SEKISUI CHEMICAL vs. Eastman Chemical | SEKISUI CHEMICAL vs. DeVry Education Group | SEKISUI CHEMICAL vs. American Public Education |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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