Correlation Between INTERSHOP Communications and Vulcan Materials
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Vulcan Materials, you can compare the effects of market volatilities on INTERSHOP Communications and Vulcan Materials 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 Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Vulcan Materials.
Diversification Opportunities for INTERSHOP Communications and Vulcan Materials
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and Vulcan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials 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 Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Vulcan Materials go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Vulcan Materials
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the Vulcan Materials. In addition to that, INTERSHOP Communications is 2.25 times more volatile than Vulcan Materials. It trades about -0.23 of its total potential returns per unit of risk. Vulcan Materials is currently generating about -0.36 per unit of volatility. If you would invest 27,200 in Vulcan Materials on September 25, 2024 and sell it today you would lose (2,200) from holding Vulcan Materials or give up 8.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. Vulcan Materials
Performance |
Timeline |
INTERSHOP Communications |
Vulcan Materials |
INTERSHOP Communications and Vulcan Materials Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and Vulcan Materials
The main advantage of trading using opposite INTERSHOP Communications and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Nemetschek AG ON | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. TeamViewer AG |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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