Correlation Between INTERSHOP Communications and Warehouses
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Warehouses De Pauw, you can compare the effects of market volatilities on INTERSHOP Communications and Warehouses 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 Warehouses. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Warehouses.
Diversification Opportunities for INTERSHOP Communications and Warehouses
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERSHOP and Warehouses is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Warehouses De Pauw in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Warehouses De Pauw 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 Warehouses. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Warehouses De Pauw has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Warehouses go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Warehouses
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 1.9 times more return on investment than Warehouses. However, INTERSHOP Communications is 1.9 times more volatile than Warehouses De Pauw. It trades about -0.01 of its potential returns per unit of risk. Warehouses De Pauw is currently generating about -0.02 per unit of risk. If you would invest 253.00 in INTERSHOP Communications Aktiengesellschaft on September 13, 2024 and sell it today you would lose (72.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 28.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Warehouses De Pauw
Performance |
| Timeline |
| INTERSHOP Communications |
| Warehouses De Pauw |
INTERSHOP Communications and Warehouses Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Warehouses
The main advantage of trading using opposite INTERSHOP Communications and Warehouses positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Warehouses 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 Warehouses will offset losses from the drop in Warehouses' long position.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| Warehouses vs. INTERSHOP Communications Aktiengesellschaft | Warehouses vs. Gaztransport Technigaz SA | Warehouses vs. Consolidated Communications Holdings | Warehouses vs. Air Transport Services |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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