Correlation Between PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications
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By analyzing existing cross correlation between PROSIEBENSAT1 MEDIADR4 and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications.
Diversification Opportunities for PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PROSIEBENSAT1 and INTERSHOP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PROSIEBENSAT1 MEDIADR4 and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ i.e., PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications
Assuming the 90 days trading horizon PROSIEBENSAT1 MEDIADR4 is expected to under-perform the INTERSHOP Communications. In addition to that, PROSIEBENSAT1 MEDIADR4/ is 1.79 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about -0.42 of its total potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.12 per unit of volatility. If you would invest 200.00 in INTERSHOP Communications Aktiengesellschaft on August 31, 2024 and sell it today you would lose (7.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 3.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PROSIEBENSAT1 MEDIADR4 vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| PROSIEBENSAT1 MEDIADR4/ |
| INTERSHOP Communications |
PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications
The main advantage of trading using opposite PROSIEBENSAT1 MEDIADR4/ and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROSIEBENSAT1 MEDIADR4/ 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.| PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc |
| INTERSHOP Communications vs. Aegean Airlines SA | INTERSHOP Communications vs. INTER CARS SA | INTERSHOP Communications vs. Grupo Carso SAB | INTERSHOP Communications vs. United Airlines Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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