Correlation Between INTERSHOP Communications and Archer Daniels
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Archer Daniels Midland, you can compare the effects of market volatilities on INTERSHOP Communications and Archer Daniels 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 Archer Daniels. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Archer Daniels.
Diversification Opportunities for INTERSHOP Communications and Archer Daniels
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTERSHOP and Archer is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Archer Daniels Midland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Archer Daniels Midland 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 Archer Daniels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Archer Daniels Midland has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Archer Daniels go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Archer Daniels
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 1.48 times more return on investment than Archer Daniels. However, INTERSHOP Communications is 1.48 times more volatile than Archer Daniels Midland. It trades about 0.02 of its potential returns per unit of risk. Archer Daniels Midland is currently generating about -0.06 per unit of risk. If you would invest 168.00 in INTERSHOP Communications Aktiengesellschaft on September 15, 2024 and sell it today you would earn a total of 3.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 1.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. Archer Daniels Midland
Performance |
Timeline |
INTERSHOP Communications |
Archer Daniels Midland |
INTERSHOP Communications and Archer Daniels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and Archer Daniels
The main advantage of trading using opposite INTERSHOP Communications and Archer Daniels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Archer Daniels 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 Archer Daniels will offset losses from the drop in Archer Daniels' long position.INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA | INTERSHOP Communications vs. Reliance Steel Aluminum |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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