Correlation Between INTERSHOP Communications and Data#3
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Data3 Limited, you can compare the effects of market volatilities on INTERSHOP Communications and Data#3 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 INTERSHOP Communications with a short position of Data#3. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Data#3.
Diversification Opportunities for INTERSHOP Communications and Data#3
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Data#3 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Data3 Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data3 Limited and INTERSHOP Communications 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 INTERSHOP Communications Aktiengesellschaft are associated (or correlated) with Data#3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data3 Limited has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Data#3 go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Data#3
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 0.85 times more return on investment than Data#3. However, INTERSHOP Communications Aktiengesellschaft is 1.18 times less risky than Data#3. It trades about 0.03 of its potential returns per unit of risk. Data3 Limited is currently generating about -0.11 per unit of risk. If you would invest 173.00 in INTERSHOP Communications Aktiengesellschaft on October 20, 2024 and sell it today you would earn a total of 5.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 2.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. Data3 Limited
Performance |
Timeline |
INTERSHOP Communications |
Data3 Limited |
INTERSHOP Communications and Data#3 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and Data#3
The main advantage of trading using opposite INTERSHOP Communications and Data#3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Data#3 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 Data#3 will offset losses from the drop in Data#3's long position.INTERSHOP Communications vs. DENTSPLY SIRONA | ||
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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