Correlation Between Performance Food and INTERSHOP Communications
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By analyzing existing cross correlation between Performance Food Group and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Performance Food 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 Performance Food with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Performance Food and INTERSHOP Communications.
Diversification Opportunities for Performance Food and INTERSHOP Communications
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Performance and INTERSHOP is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Performance Food Group and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Performance Food 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 Performance Food Group 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 Performance Food i.e., Performance Food and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Performance Food and INTERSHOP Communications
Assuming the 90 days trading horizon Performance Food Group is expected to generate 0.57 times more return on investment than INTERSHOP Communications. However, Performance Food Group is 1.75 times less risky than INTERSHOP Communications. It trades about 0.18 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.11 per unit of risk. If you would invest 7,800 in Performance Food Group on September 20, 2024 and sell it today you would earn a total of 400.00 from holding Performance Food Group or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Performance Food Group vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Performance Food |
| INTERSHOP Communications |
Performance Food and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Performance Food and INTERSHOP Communications
The main advantage of trading using opposite Performance Food and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Performance Food 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.| Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc | Performance Food vs. Apple Inc |
| INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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