Correlation Between Ribbon Communications and INTERSHOP Communications
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By analyzing existing cross correlation between Ribbon Communications and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Ribbon Communications 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 Ribbon Communications with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ribbon Communications and INTERSHOP Communications.
Diversification Opportunities for Ribbon Communications and INTERSHOP Communications
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ribbon and INTERSHOP is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ribbon Communications and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Ribbon 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 Ribbon Communications 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 Ribbon Communications i.e., Ribbon Communications and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Ribbon Communications and INTERSHOP Communications
Assuming the 90 days trading horizon Ribbon Communications is expected to generate 1.71 times more return on investment than INTERSHOP Communications. However, Ribbon Communications is 1.71 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.17 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.01 per unit of risk. If you would invest 338.00 in Ribbon Communications on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Ribbon Communications or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ribbon Communications vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Ribbon Communications |
| INTERSHOP Communications |
Ribbon Communications and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ribbon Communications and INTERSHOP Communications
The main advantage of trading using opposite Ribbon Communications and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ribbon Communications 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.| Ribbon Communications vs. T Mobile | Ribbon Communications vs. ATT Inc | Ribbon Communications vs. Deutsche Telekom AG |
| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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