Correlation Between TEXAS ROADHOUSE and INTERSHOP Communications
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By analyzing existing cross correlation between TEXAS ROADHOUSE and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on TEXAS ROADHOUSE 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 TEXAS ROADHOUSE with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEXAS ROADHOUSE and INTERSHOP Communications.
Diversification Opportunities for TEXAS ROADHOUSE and INTERSHOP Communications
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TEXAS and INTERSHOP is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding TEXAS ROADHOUSE and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and TEXAS ROADHOUSE 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 TEXAS ROADHOUSE 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 TEXAS ROADHOUSE i.e., TEXAS ROADHOUSE and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between TEXAS ROADHOUSE and INTERSHOP Communications
Assuming the 90 days trading horizon TEXAS ROADHOUSE is expected to generate 1.28 times more return on investment than INTERSHOP Communications. However, TEXAS ROADHOUSE is 1.28 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.14 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.02 per unit of risk. If you would invest 17,385 in TEXAS ROADHOUSE on August 27, 2024 and sell it today you would earn a total of 905.00 from holding TEXAS ROADHOUSE or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TEXAS ROADHOUSE vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| TEXAS ROADHOUSE |
| INTERSHOP Communications |
TEXAS ROADHOUSE and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEXAS ROADHOUSE and INTERSHOP Communications
The main advantage of trading using opposite TEXAS ROADHOUSE and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEXAS ROADHOUSE 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.| TEXAS ROADHOUSE vs. Apple Inc | TEXAS ROADHOUSE vs. Apple Inc | TEXAS ROADHOUSE vs. Apple Inc | TEXAS ROADHOUSE vs. Microsoft |
| INTERSHOP Communications vs. Nemetschek AG ON | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. NMI Holdings | INTERSHOP Communications vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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