Correlation Between IPG Photonics and Global Partner
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Global Partner 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 Global Partner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Global Partner Acq, you can compare the effects of market volatilities on IPG Photonics and Global Partner 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 Global Partner. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Global Partner.
Diversification Opportunities for IPG Photonics and Global Partner
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Global Partner Acq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Partner Acq 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 Global Partner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Partner Acq has no effect on the direction of IPG Photonics i.e., IPG Photonics and Global Partner go up and down completely randomly.
Pair Corralation between IPG Photonics and Global Partner
If you would invest (100.00) in Global Partner Acq on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Global Partner Acq 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. Global Partner Acq
Performance |
| Timeline |
| IPG Photonics |
| Global Partner Acq |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IPG Photonics and Global Partner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Global Partner
The main advantage of trading using opposite IPG Photonics and Global Partner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Global Partner 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 Global Partner will offset losses from the drop in Global Partner's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Global Partner vs. Inhibrx | Global Partner vs. Sunlands Technology Group | Global Partner vs. Skillful Craftsman Education | Global Partner vs. Alvotech |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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