Correlation Between Tower Semiconductor and INTERSHOP Communications
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By analyzing existing cross correlation between Tower Semiconductor and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Tower Semiconductor 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 Tower Semiconductor with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Semiconductor and INTERSHOP Communications.
Diversification Opportunities for Tower Semiconductor and INTERSHOP Communications
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tower and INTERSHOP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Tower Semiconductor and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Tower Semiconductor 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 Tower Semiconductor 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 Tower Semiconductor i.e., Tower Semiconductor and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Tower Semiconductor and INTERSHOP Communications
Assuming the 90 days horizon Tower Semiconductor is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, Tower Semiconductor is 1.28 times less risky than INTERSHOP Communications. The stock trades about -0.07 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 180.00 in INTERSHOP Communications Aktiengesellschaft on December 3, 2024 and sell it today you would earn a total of 20.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 11.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tower Semiconductor vs. INTERSHOP Communications Aktie
Performance |
Timeline |
Tower Semiconductor |
INTERSHOP Communications |
Tower Semiconductor and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tower Semiconductor and INTERSHOP Communications
The main advantage of trading using opposite Tower Semiconductor and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Semiconductor 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.Tower Semiconductor vs. Ping An Insurance | Tower Semiconductor vs. TRADELINK ELECTRON | Tower Semiconductor vs. VIENNA INSURANCE GR | Tower Semiconductor vs. FLOW TRADERS LTD |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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