Correlation Between INTERSHOP Communications and Evolution Mining
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Evolution Mining Limited, you can compare the effects of market volatilities on INTERSHOP Communications and Evolution Mining 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 Evolution Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Evolution Mining.
Diversification Opportunities for INTERSHOP Communications and Evolution Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Evolution is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Evolution Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Mining 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 Evolution Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Mining has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Evolution Mining go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Evolution Mining
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.85 times more return on investment than Evolution Mining. However, INTERSHOP Communications Aktiengesellschaft is 1.18 times less risky than Evolution Mining. It trades about 0.01 of its potential returns per unit of risk. Evolution Mining Limited is currently generating about -0.06 per unit of risk. If you would invest 193.00 in INTERSHOP Communications Aktiengesellschaft on August 29, 2024 and sell it today you would earn a total of 0.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Evolution Mining Limited
Performance |
| Timeline |
| INTERSHOP Communications |
| Evolution Mining |
INTERSHOP Communications and Evolution Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Evolution Mining
The main advantage of trading using opposite INTERSHOP Communications and Evolution Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Evolution Mining 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 Evolution Mining will offset losses from the drop in Evolution Mining'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 |
| Evolution Mining vs. Franco Nevada | Evolution Mining vs. Agnico Eagle Mines | Evolution Mining vs. Superior Plus Corp | Evolution Mining vs. NMI Holdings |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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