Correlation Between LION ONE and INTERSHOP Communications
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By analyzing existing cross correlation between LION ONE METALS and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on LION ONE 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 LION ONE with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of LION ONE and INTERSHOP Communications.
Diversification Opportunities for LION ONE and INTERSHOP Communications
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between LION and INTERSHOP is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding LION ONE METALS and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and LION ONE 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 LION ONE METALS 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 LION ONE i.e., LION ONE and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between LION ONE and INTERSHOP Communications
Assuming the 90 days trading horizon LION ONE METALS is expected to under-perform the INTERSHOP Communications. In addition to that, LION ONE is 1.6 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about -0.08 of its total potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.02 per unit of volatility. If you would invest 165.00 in INTERSHOP Communications Aktiengesellschaft on September 4, 2024 and sell it today you would earn a total of 15.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LION ONE METALS vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| LION ONE METALS |
| INTERSHOP Communications |
LION ONE and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LION ONE and INTERSHOP Communications
The main advantage of trading using opposite LION ONE and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LION ONE 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.The idea behind LION ONE METALS and INTERSHOP Communications Aktiengesellschaft 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.| INTERSHOP Communications vs. Rocket Internet SE | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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