Correlation Between KCE EL and INTERSHOP Communications
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By analyzing existing cross correlation between KCE EL PCL and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on KCE EL 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 KCE EL with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of KCE EL and INTERSHOP Communications.
Diversification Opportunities for KCE EL and INTERSHOP Communications
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KCE and INTERSHOP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding KCE EL PCL and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and KCE EL 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 KCE EL PCL 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 KCE EL i.e., KCE EL and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between KCE EL and INTERSHOP Communications
Assuming the 90 days trading horizon KCE EL PCL is expected to under-perform the INTERSHOP Communications. In addition to that, KCE EL is 1.5 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about -0.53 of its total potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.04 per unit of volatility. If you would invest 193.00 in INTERSHOP Communications Aktiengesellschaft on September 12, 2024 and sell it today you would lose (3.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KCE EL PCL vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| KCE EL PCL |
| INTERSHOP Communications |
KCE EL and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KCE EL and INTERSHOP Communications
The main advantage of trading using opposite KCE EL and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KCE EL 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.| KCE EL vs. American Homes 4 | KCE EL vs. Fukuyama Transporting Co | KCE EL vs. Aedas Homes SA | KCE EL vs. TITANIUM TRANSPORTGROUP |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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