Correlation Between Lenovo Group and INTERSHOP Communications
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By analyzing existing cross correlation between Lenovo Group Limited and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Lenovo Group and INTERSHOP Communications 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 Lenovo Group with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lenovo Group and INTERSHOP Communications.
Diversification Opportunities for Lenovo Group and INTERSHOP Communications
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lenovo and INTERSHOP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lenovo Group Limited and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Lenovo Group 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 Lenovo Group Limited are associated (or correlated) with INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Lenovo Group i.e., Lenovo Group and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Lenovo Group and INTERSHOP Communications
Assuming the 90 days trading horizon Lenovo Group Limited is expected to generate 1.35 times more return on investment than INTERSHOP Communications. However, Lenovo Group is 1.35 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.06 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.16 per unit of risk. If you would invest 2,218 in Lenovo Group Limited on September 13, 2024 and sell it today you would earn a total of 62.00 from holding Lenovo Group Limited or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lenovo Group Limited vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Lenovo Group Limited |
| INTERSHOP Communications |
Lenovo Group and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lenovo Group and INTERSHOP Communications
The main advantage of trading using opposite Lenovo Group and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lenovo Group position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.| Lenovo Group vs. JIAHUA STORES | Lenovo Group vs. COSTCO WHOLESALE CDR | Lenovo Group vs. Retail Estates NV | Lenovo Group vs. SCANSOURCE |
| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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