Correlation Between INTERSHOP Communications and Thyssenkrupp
Specify exactly 2 symbols:
By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and thyssenkrupp AG, you can compare the effects of market volatilities on INTERSHOP Communications and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Thyssenkrupp.
Diversification Opportunities for INTERSHOP Communications and Thyssenkrupp
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Thyssenkrupp is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Thyssenkrupp go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Thyssenkrupp
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.82 times more return on investment than Thyssenkrupp. However, INTERSHOP Communications Aktiengesellschaft is 1.21 times less risky than Thyssenkrupp. It trades about 0.01 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about -0.03 per unit of risk. If you would invest 182.00 in INTERSHOP Communications Aktiengesellschaft on October 16, 2024 and sell it today you would lose (5.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. thyssenkrupp AG
Performance |
| Timeline |
| INTERSHOP Communications |
| thyssenkrupp AG |
INTERSHOP Communications and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Thyssenkrupp
The main advantage of trading using opposite INTERSHOP Communications and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and thyssenkrupp AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Thyssenkrupp vs. INTERSHOP Communications Aktiengesellschaft | Thyssenkrupp vs. Algonquin Power Utilities | Thyssenkrupp vs. Computershare Limited | Thyssenkrupp vs. Cal Maine Foods |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |