Correlation Between Vastned Retail and INTERSHOP Communications
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By analyzing existing cross correlation between Vastned Retail NV and INTERSHOP Communications Aktiengesellschaft, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of INTERSHOP Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and INTERSHOP Communications.
Diversification Opportunities for Vastned Retail and INTERSHOP Communications
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vastned and INTERSHOP is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV and INTERSHOP Communications Aktie in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERSHOP Communications and Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and INTERSHOP Communications go up and down completely randomly.
Pair Corralation between Vastned Retail and INTERSHOP Communications
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.42 times more return on investment than INTERSHOP Communications. However, Vastned Retail NV is 2.36 times less risky than INTERSHOP Communications. It trades about -0.31 of its potential returns per unit of risk. INTERSHOP Communications Aktiengesellschaft is currently generating about -0.23 per unit of risk. If you would invest 2,233 in Vastned Retail NV on September 25, 2024 and sell it today you would lose (153.00) from holding Vastned Retail NV or give up 6.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vastned Retail NV vs. INTERSHOP Communications Aktie
Performance |
Timeline |
Vastned Retail NV |
INTERSHOP Communications |
Vastned Retail and INTERSHOP Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vastned Retail and INTERSHOP Communications
The main advantage of trading using opposite Vastned Retail and INTERSHOP Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.Vastned Retail vs. Carsales | Vastned Retail vs. CarsalesCom | Vastned Retail vs. Lamar Advertising | Vastned Retail vs. Entravision Communications |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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