Correlation Between INTERSHOP Communications and Wizz Air
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Wizz Air Holdings, you can compare the effects of market volatilities on INTERSHOP Communications and Wizz Air 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 Wizz Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Wizz Air.
Diversification Opportunities for INTERSHOP Communications and Wizz Air
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTERSHOP and Wizz is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Wizz Air Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wizz Air 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 Wizz Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wizz Air Holdings has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Wizz Air go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Wizz Air
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.84 times more return on investment than Wizz Air. However, INTERSHOP Communications Aktiengesellschaft is 1.19 times less risky than Wizz Air. It trades about -0.02 of its potential returns per unit of risk. Wizz Air Holdings is currently generating about -0.03 per unit of risk. If you would invest 302.00 in INTERSHOP Communications Aktiengesellschaft on October 14, 2024 and sell it today you would lose (123.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 40.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Wizz Air Holdings
Performance |
| Timeline |
| INTERSHOP Communications |
| Wizz Air Holdings |
INTERSHOP Communications and Wizz Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Wizz Air
The main advantage of trading using opposite INTERSHOP Communications and Wizz Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Wizz Air 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 Wizz Air will offset losses from the drop in Wizz Air's long position.The idea behind INTERSHOP Communications Aktiengesellschaft and Wizz Air Holdings 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.
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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