Correlation Between MICRONIC MYDATA and INTERSHOP Communications
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By analyzing existing cross correlation between MICRONIC MYDATA and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on MICRONIC MYDATA 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 MICRONIC MYDATA with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of MICRONIC MYDATA and INTERSHOP Communications.
Diversification Opportunities for MICRONIC MYDATA and INTERSHOP Communications
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MICRONIC and INTERSHOP is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding MICRONIC MYDATA and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and MICRONIC MYDATA 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 MICRONIC MYDATA 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 MICRONIC MYDATA i.e., MICRONIC MYDATA and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between MICRONIC MYDATA and INTERSHOP Communications
Assuming the 90 days trading horizon MICRONIC MYDATA is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, MICRONIC MYDATA is 3.3 times less risky than INTERSHOP Communications. The stock trades about -0.43 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 184.00 in INTERSHOP Communications Aktiengesellschaft on December 11, 2024 and sell it today you would earn a total of 15.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MICRONIC MYDATA vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| MICRONIC MYDATA |
| INTERSHOP Communications |
MICRONIC MYDATA and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MICRONIC MYDATA and INTERSHOP Communications
The main advantage of trading using opposite MICRONIC MYDATA and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICRONIC MYDATA 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.| MICRONIC MYDATA vs. Apple Inc | MICRONIC MYDATA vs. Apple Inc | MICRONIC MYDATA vs. Apple Inc | MICRONIC MYDATA vs. Apple Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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