Correlation Between Webster Financial and INTERSHOP Communications
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By analyzing existing cross correlation between Webster Financial and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Webster Financial 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 Webster Financial with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and INTERSHOP Communications.
Diversification Opportunities for Webster Financial and INTERSHOP Communications
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Webster and INTERSHOP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Webster Financial 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 Webster Financial 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 Webster Financial i.e., Webster Financial and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Webster Financial and INTERSHOP Communications
Assuming the 90 days horizon Webster Financial is expected to generate 0.86 times more return on investment than INTERSHOP Communications. However, Webster Financial is 1.16 times less risky than INTERSHOP Communications. It trades about 0.07 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.04 per unit of risk. If you would invest 3,781 in Webster Financial on September 14, 2024 and sell it today you would earn a total of 1,819 from holding Webster Financial or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Webster Financial vs. INTERSHOP Communications Aktie
Performance |
| Timeline |
| Webster Financial |
| INTERSHOP Communications |
Webster Financial and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and INTERSHOP Communications
The main advantage of trading using opposite Webster Financial and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial 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.| Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Regions Financial | Webster Financial vs. Superior Plus Corp | Webster Financial vs. SIVERS SEMICONDUCTORS AB |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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