Correlation Between INTERSHOP Communications and Sunstone Hotel
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Sunstone Hotel Investors, you can compare the effects of market volatilities on INTERSHOP Communications and Sunstone Hotel 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 Sunstone Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Sunstone Hotel.
Diversification Opportunities for INTERSHOP Communications and Sunstone Hotel
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and Sunstone is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Sunstone Hotel Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunstone Hotel Investors 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 Sunstone Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunstone Hotel Investors has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Sunstone Hotel go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Sunstone Hotel
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Sunstone Hotel. In addition to that, INTERSHOP Communications is 1.67 times more volatile than Sunstone Hotel Investors. It trades about -0.02 of its total potential returns per unit of risk. Sunstone Hotel Investors is currently generating about 0.03 per unit of volatility. If you would invest 926.00 in Sunstone Hotel Investors on October 18, 2024 and sell it today you would earn a total of 194.00 from holding Sunstone Hotel Investors or generate 20.95% 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. Sunstone Hotel Investors
Performance |
| Timeline |
| INTERSHOP Communications |
| Sunstone Hotel Investors |
INTERSHOP Communications and Sunstone Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Sunstone Hotel
The main advantage of trading using opposite INTERSHOP Communications and Sunstone Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Sunstone Hotel 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 Sunstone Hotel will offset losses from the drop in Sunstone Hotel's long position.| INTERSHOP Communications vs. China Railway Construction | INTERSHOP Communications vs. TITAN MACHINERY | INTERSHOP Communications vs. Daito Trust Construction | INTERSHOP Communications vs. NEWELL RUBBERMAID |
| Sunstone Hotel vs. Electronic Arts | Sunstone Hotel vs. INTERSHOP Communications Aktiengesellschaft | Sunstone Hotel vs. Ribbon Communications | Sunstone Hotel vs. CRISPR Therapeutics AG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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