Correlation Between INTERSHOP Communications and Ultra Clean
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Ultra Clean Holdings, you can compare the effects of market volatilities on INTERSHOP Communications and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Ultra Clean.
Diversification Opportunities for INTERSHOP Communications and Ultra Clean
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between INTERSHOP and Ultra is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Ultra Clean go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Ultra Clean
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.67 times more return on investment than Ultra Clean. However, INTERSHOP Communications Aktiengesellschaft is 1.49 times less risky than Ultra Clean. It trades about 0.14 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.16 per unit of risk. If you would invest 178.00 in INTERSHOP Communications Aktiengesellschaft on December 1, 2024 and sell it today you would earn a total of 22.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 12.36% 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. Ultra Clean Holdings
Performance |
| Timeline |
| INTERSHOP Communications |
| Ultra Clean Holdings |
INTERSHOP Communications and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Ultra Clean
The main advantage of trading using opposite INTERSHOP Communications and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| INTERSHOP Communications vs. OFFICE DEPOT | INTERSHOP Communications vs. alstria office REIT AG | INTERSHOP Communications vs. CAIRN HOMES EO | INTERSHOP Communications vs. Neinor Homes SA |
| Ultra Clean vs. INTERCONT HOTELS | Ultra Clean vs. USWE SPORTS AB | Ultra Clean vs. JD SPORTS FASH | Ultra Clean vs. DICKS Sporting Goods |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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