Correlation Between INTERSHOP Communications and Ibiden CoLtd
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Ibiden CoLtd, you can compare the effects of market volatilities on INTERSHOP Communications and Ibiden CoLtd 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 Ibiden CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Ibiden CoLtd.
Diversification Opportunities for INTERSHOP Communications and Ibiden CoLtd
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTERSHOP and Ibiden is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Ibiden CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibiden CoLtd 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 Ibiden CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibiden CoLtd has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Ibiden CoLtd go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Ibiden CoLtd
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Ibiden CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, INTERSHOP Communications Aktiengesellschaft is 2.39 times less risky than Ibiden CoLtd. The stock trades about -0.02 of its potential returns per unit of risk. The Ibiden CoLtd is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 965.00 in Ibiden CoLtd on October 11, 2024 and sell it today you would earn a total of 2,075 from holding Ibiden CoLtd or generate 215.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. Ibiden CoLtd
Performance |
Timeline |
INTERSHOP Communications |
Ibiden CoLtd |
INTERSHOP Communications and Ibiden CoLtd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and Ibiden CoLtd
The main advantage of trading using opposite INTERSHOP Communications and Ibiden CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Ibiden CoLtd 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 Ibiden CoLtd will offset losses from the drop in Ibiden CoLtd's long position.INTERSHOP Communications vs. ZhongAn Online P | INTERSHOP Communications vs. Lamar Advertising | INTERSHOP Communications vs. PREMIER FOODS | INTERSHOP Communications vs. INDOFOOD AGRI RES |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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