Correlation Between IPG Photonics and Aphria
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Aphria 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 IPG Photonics and Aphria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Aphria Inc, you can compare the effects of market volatilities on IPG Photonics and Aphria 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 IPG Photonics with a short position of Aphria. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Aphria.
Diversification Opportunities for IPG Photonics and Aphria
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Aphria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Aphria Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aphria Inc and IPG Photonics 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 IPG Photonics are associated (or correlated) with Aphria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aphria Inc has no effect on the direction of IPG Photonics i.e., IPG Photonics and Aphria go up and down completely randomly.
Pair Corralation between IPG Photonics and Aphria
If you would invest (100.00) in Aphria Inc on October 1, 2024 and sell it today you would earn a total of 100.00 from holding Aphria Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IPG Photonics vs. Aphria Inc
Performance |
| Timeline |
| IPG Photonics |
| Aphria Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPG Photonics and Aphria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Aphria
The main advantage of trading using opposite IPG Photonics and Aphria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Aphria 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 Aphria will offset losses from the drop in Aphria's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Aphria vs. Delek Logistics Partners | Aphria vs. TFI International | Aphria vs. Mesa Air Group | Aphria vs. Bright Scholar Education |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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