Correlation Between IPG Photonics and Ever Glory
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Ever Glory 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 Ever Glory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Ever Glory International Group, you can compare the effects of market volatilities on IPG Photonics and Ever Glory 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 Ever Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Ever Glory.
Diversification Opportunities for IPG Photonics and Ever Glory
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Ever is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Ever Glory International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Glory Internati 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 Ever Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Glory Internati has no effect on the direction of IPG Photonics i.e., IPG Photonics and Ever Glory go up and down completely randomly.
Pair Corralation between IPG Photonics and Ever Glory
If you would invest (100.00) in Ever Glory International Group on January 5, 2025 and sell it today you would earn a total of 100.00 from holding Ever Glory International Group 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. Ever Glory International Group
Performance |
| Timeline |
| IPG Photonics |
| Ever Glory Internati |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IPG Photonics and Ever Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Ever Glory
The main advantage of trading using opposite IPG Photonics and Ever Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Ever Glory 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 Ever Glory will offset losses from the drop in Ever Glory's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Ever Glory vs. Ecovyst | Ever Glory vs. Webus International Limited | Ever Glory vs. Solstad Offshore ASA | Ever Glory vs. Q2 Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |