Correlation Between Computer and INTERSHOP Communications
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By analyzing existing cross correlation between Computer And Technologies and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Computer 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 Computer with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer and INTERSHOP Communications.
Diversification Opportunities for Computer and INTERSHOP Communications
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Computer and INTERSHOP is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Computer 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 Computer And Technologies 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 Computer i.e., Computer and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Computer and INTERSHOP Communications
Assuming the 90 days horizon Computer And Technologies is expected to under-perform the INTERSHOP Communications. But the stock apears to be less risky and, when comparing its historical volatility, Computer And Technologies is 1.27 times less risky than INTERSHOP Communications. The stock trades about -0.1 of its potential returns per unit of risk. The INTERSHOP Communications Aktiengesellschaft is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 168.00 in INTERSHOP Communications Aktiengesellschaft on September 23, 2024 and sell it today you would earn a total of 8.00 from holding INTERSHOP Communications Aktiengesellschaft or generate 4.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Computer And Technologies vs. INTERSHOP Communications Aktie
Performance |
Timeline |
Computer And Technologies |
INTERSHOP Communications |
Computer and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Computer and INTERSHOP Communications
The main advantage of trading using opposite Computer and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer 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.Computer vs. Accenture plc | Computer vs. International Business Machines | Computer vs. Infosys Limited | Computer vs. Cognizant Technology Solutions |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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