Correlation Between IPG Photonics and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Elmos Semiconductor 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 Elmos Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Elmos Semiconductor SE, you can compare the effects of market volatilities on IPG Photonics and Elmos Semiconductor 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 Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Elmos Semiconductor.
Diversification Opportunities for IPG Photonics and Elmos Semiconductor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Elmos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor 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 Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of IPG Photonics i.e., IPG Photonics and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between IPG Photonics and Elmos Semiconductor
If you would invest 8,923 in Elmos Semiconductor SE on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Elmos Semiconductor SE 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 |
IPG Photonics vs. Elmos Semiconductor SE
Performance |
| Timeline |
| IPG Photonics |
| Elmos Semiconductor |
IPG Photonics and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Elmos Semiconductor
The main advantage of trading using opposite IPG Photonics and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Elmos Semiconductor vs. World Houseware Limited | Elmos Semiconductor vs. Avient Corp | Elmos Semiconductor vs. Chemours Co | Elmos Semiconductor vs. Stepan Company |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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