Correlation Between PTT Public and INTERSHOP Communications

Can any of the company-specific risk be diversified away by investing in both PTT Public and INTERSHOP Communications at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PTT Public and INTERSHOP Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PTT Public and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on PTT Public 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 PTT Public with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Public and INTERSHOP Communications.

Diversification Opportunities for PTT Public and INTERSHOP Communications

0.0

Correlation Coefficient

PTT Public  INTERSHOP Communications

Pay attention - limited upside

The 3 months correlation between PTT and INTERSHOP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PTT Public and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and PTT Public 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 PTT Public 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 PTT Public i.e., PTT Public and INTERSHOP Communications go up and down completely randomly.

Pair Corralation between PTT Public and INTERSHOP Communications

If you would invest  174.00  in INTERSHOP Communications Aktiengesellschaft on December 22, 2024 and sell it today you would earn a total of  19.00  from holding INTERSHOP Communications Aktiengesellschaft or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PTT Public  vs.  INTERSHOP Communications Aktie

PTT Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days PTT Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PTT Public is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

INTERSHOP Communications

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in INTERSHOP Communications Aktiengesellschaft are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, INTERSHOP Communications exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PTT Public and INTERSHOP Communications

The main advantage of trading using opposite PTT Public and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Public 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.

The idea behind PTT Public and INTERSHOP Communications Aktiengesellschaft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.