Correlation Between INTERSHOP Communications and Tesla
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Tesla Inc, you can compare the effects of market volatilities on INTERSHOP Communications and Tesla 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 Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Tesla.
Diversification Opportunities for INTERSHOP Communications and Tesla
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Tesla is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc 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 Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Tesla go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Tesla
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 11.68 times less return on investment than Tesla. But when comparing it to its historical volatility, INTERSHOP Communications Aktiengesellschaft is 3.47 times less risky than Tesla. It trades about 0.09 of its potential returns per unit of risk. Tesla Inc is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 24,150 in Tesla Inc on August 28, 2024 and sell it today you would earn a total of 8,350 from holding Tesla Inc or generate 34.58% 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. Tesla Inc
Performance |
| Timeline |
| INTERSHOP Communications |
| Tesla Inc |
INTERSHOP Communications and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Tesla
The main advantage of trading using opposite INTERSHOP Communications and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla'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 |
| Tesla vs. Playa Hotels Resorts | Tesla vs. BioNTech SE | Tesla vs. PLAY2CHILL SA ZY | Tesla 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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