Correlation Between INTERSHOP Communications and Carsales
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and Carsales, you can compare the effects of market volatilities on INTERSHOP Communications and Carsales 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 Carsales. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and Carsales.
Diversification Opportunities for INTERSHOP Communications and Carsales
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERSHOP and Carsales is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and Carsales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carsales 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 Carsales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carsales has no effect on the direction of INTERSHOP Communications i.e., INTERSHOP Communications and Carsales go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and Carsales
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to generate 2.07 times more return on investment than Carsales. However, INTERSHOP Communications is 2.07 times more volatile than Carsales. It trades about -0.23 of its potential returns per unit of risk. Carsales is currently generating about -0.52 per unit of risk. If you would invest 198.00 in INTERSHOP Communications Aktiengesellschaft on September 25, 2024 and sell it today you would lose (24.00) from holding INTERSHOP Communications Aktiengesellschaft or give up 12.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
INTERSHOP Communications Aktie vs. Carsales
Performance |
Timeline |
INTERSHOP Communications |
Carsales |
INTERSHOP Communications and Carsales Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTERSHOP Communications and Carsales
The main advantage of trading using opposite INTERSHOP Communications and Carsales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications position performs unexpectedly, Carsales 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 Carsales will offset losses from the drop in Carsales' long position.INTERSHOP Communications vs. SAP SE | INTERSHOP Communications vs. Nemetschek AG ON | INTERSHOP Communications vs. Workiva | INTERSHOP Communications vs. TeamViewer AG |
Carsales vs. GAMING FAC SA | Carsales vs. Scientific Games | Carsales vs. Games Workshop Group | Carsales vs. Penn National Gaming |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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