Correlation Between NIPPON STEEL and INTERSHOP Communications
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By analyzing existing cross correlation between NIPPON STEEL SPADR and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on NIPPON STEEL 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 NIPPON STEEL with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIPPON STEEL and INTERSHOP Communications.
Diversification Opportunities for NIPPON STEEL and INTERSHOP Communications
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NIPPON and INTERSHOP is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NIPPON STEEL SPADR and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and NIPPON STEEL 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 NIPPON STEEL SPADR 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 NIPPON STEEL i.e., NIPPON STEEL and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between NIPPON STEEL and INTERSHOP Communications
Assuming the 90 days trading horizon NIPPON STEEL SPADR is expected to generate 0.98 times more return on investment than INTERSHOP Communications. However, NIPPON STEEL SPADR is 1.02 times less risky than INTERSHOP Communications. It trades about 0.0 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.02 per unit of risk. If you would invest 630.00 in NIPPON STEEL SPADR on September 3, 2024 and sell it today you would lose (15.00) from holding NIPPON STEEL SPADR or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIPPON STEEL SPADR vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| NIPPON STEEL SPADR |
| INTERSHOP Communications |
NIPPON STEEL and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIPPON STEEL and INTERSHOP Communications
The main advantage of trading using opposite NIPPON STEEL and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIPPON STEEL 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.| NIPPON STEEL vs. UNITED RENTALS | NIPPON STEEL vs. PARKEN Sport Entertainment | NIPPON STEEL vs. ADRIATIC METALS LS 013355 | NIPPON STEEL vs. Eastman Chemical |
| INTERSHOP Communications vs. Neinor Homes SA | INTERSHOP Communications vs. STRAYER EDUCATION | INTERSHOP Communications vs. Aedas Homes SA | INTERSHOP Communications vs. Corporate Office Properties |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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