Correlation Between INTERSHOP Communications and Gelsenwasser
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Gelsenwasser AG, you can compare the effects of market volatilities on INTERSHOP Communications and Gelsenwasser 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 Gelsenwasser. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Gelsenwasser.
Diversification Opportunities for INTERSHOP Communications and Gelsenwasser
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTERSHOP and Gelsenwasser is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Gelsenwasser AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelsenwasser AG 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 Gelsenwasser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelsenwasser AG has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Gelsenwasser go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Gelsenwasser
Assuming the 90 days trading horizon INTERSHOP Communications is expected to generate 15.01 times less return on investment than Gelsenwasser. But when comparing it to its historical volatility, INTERSHOP Communications Aktiengesellschaft is 1.81 times less risky than Gelsenwasser. It trades about 0.01 of its potential returns per unit of risk. Gelsenwasser AG is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 50,500 in Gelsenwasser AG on August 29, 2024 and sell it today you would earn a total of 1,500 from holding Gelsenwasser AG or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. Gelsenwasser AG
Performance |
| Timeline |
| INTERSHOP Communications |
| Gelsenwasser AG |
INTERSHOP Communications and Gelsenwasser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and Gelsenwasser
The main advantage of trading using opposite INTERSHOP Communications and Gelsenwasser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Gelsenwasser 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 Gelsenwasser will offset losses from the drop in Gelsenwasser's long position.| INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. Fastly Inc |
| Gelsenwasser vs. United Utilities Group | Gelsenwasser vs. Guangdong Investment Limited | Gelsenwasser vs. TTW Public | Gelsenwasser vs. Superior Plus Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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