Correlation Between NEWELL RUBBERMAID and INTERSHOP Communications
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By analyzing existing cross correlation between NEWELL RUBBERMAID and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEWELL RUBBERMAID and INTERSHOP Communications.
Diversification Opportunities for NEWELL RUBBERMAID and INTERSHOP Communications
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between NEWELL and INTERSHOP is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding NEWELL RUBBERMAID and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID i.e., NEWELL RUBBERMAID and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between NEWELL RUBBERMAID and INTERSHOP Communications
Assuming the 90 days trading horizon NEWELL RUBBERMAID is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, NEWELL RUBBERMAID is 1.22 times less risky than INTERSHOP Communications. The stock trades about -0.28 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 182.00 in INTERSHOP Communications Aktiengesellschaft on October 18, 2024 and sell it today you would lose (4.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEWELL RUBBERMAID vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| NEWELL RUBBERMAID |
| INTERSHOP Communications |
NEWELL RUBBERMAID and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEWELL RUBBERMAID and INTERSHOP Communications
The main advantage of trading using opposite NEWELL RUBBERMAID and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEWELL RUBBERMAID 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.| NEWELL RUBBERMAID vs. EMBARK EDUCATION LTD | NEWELL RUBBERMAID vs. STORE ELECTRONIC | NEWELL RUBBERMAID vs. Perdoceo Education | NEWELL RUBBERMAID vs. Xinhua Winshare Publishing |
| INTERSHOP Communications vs. China Railway Construction | INTERSHOP Communications vs. TITAN MACHINERY | INTERSHOP Communications vs. Daito Trust Construction | INTERSHOP Communications vs. NEWELL RUBBERMAID |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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