Correlation Between Herman Miller and INTERSHOP Communications
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By analyzing existing cross correlation between Herman Miller and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Herman Miller and INTERSHOP Communications 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 Herman Miller with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herman Miller and INTERSHOP Communications.
Diversification Opportunities for Herman Miller and INTERSHOP Communications
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Herman and INTERSHOP is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Herman Miller and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Herman Miller 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 Herman Miller are associated (or correlated) with INTERSHOP Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERSHOP Communications has no effect on the direction of Herman Miller i.e., Herman Miller and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Herman Miller and INTERSHOP Communications
Assuming the 90 days horizon Herman Miller is expected to generate 5.1 times less return on investment than INTERSHOP Communications. In addition to that, Herman Miller is 1.05 times more volatile than INTERSHOP Communications Aktiengesellschaft. It trades about 0.01 of its total potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about 0.07 per unit of volatility. If you would invest 168.00 in INTERSHOP Communications Aktiengesellschaft on September 7, 2024 and sell it today you would earn a total of 15.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 8.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Herman Miller vs. INTERSHOP Communications Aktie
Performance |
Timeline |
Herman Miller |
INTERSHOP Communications |
Herman Miller and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Herman Miller and INTERSHOP Communications
The main advantage of trading using opposite Herman Miller and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herman Miller position performs unexpectedly, INTERSHOP Communications 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 INTERSHOP Communications will offset losses from the drop in INTERSHOP Communications' long position.Herman Miller vs. BLUESCOPE STEEL | Herman Miller vs. NIPPON STEEL SPADR | Herman Miller vs. AM EAGLE OUTFITTERS | Herman Miller vs. Boiron SA |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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