Correlation Between First Ship and IPG Photonics
Can any of the company-specific risk be diversified away by investing in both First Ship and IPG Photonics 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 First Ship and IPG Photonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and IPG Photonics, you can compare the effects of market volatilities on First Ship and IPG Photonics 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 First Ship with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and IPG Photonics.
Diversification Opportunities for First Ship and IPG Photonics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and IPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and First Ship 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 First Ship Lease are associated (or correlated) with IPG Photonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPG Photonics has no effect on the direction of First Ship i.e., First Ship and IPG Photonics go up and down completely randomly.
Pair Corralation between First Ship and IPG Photonics
If you would invest 4.00 in First Ship Lease on September 12, 2024 and sell it today you would earn a total of 0.00 from holding First Ship Lease or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Ship Lease vs. IPG Photonics
Performance |
| Timeline |
| First Ship Lease |
| IPG Photonics |
First Ship and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and IPG Photonics
The main advantage of trading using opposite First Ship and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, IPG Photonics 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 IPG Photonics will offset losses from the drop in IPG Photonics' long position.| First Ship vs. United Rentals | First Ship vs. Ashtead Gro | First Ship vs. AerCap Holdings NV | First Ship vs. Fortress Transp Infra |
| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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