Correlation Between IPG Photonics and JBG SMITH
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and JBG SMITH 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 JBG SMITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and JBG SMITH Properties, you can compare the effects of market volatilities on IPG Photonics and JBG SMITH 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 JBG SMITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and JBG SMITH.
Diversification Opportunities for IPG Photonics and JBG SMITH
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between IPG and JBG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and JBG SMITH Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBG SMITH Properties 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 JBG SMITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBG SMITH Properties has no effect on the direction of IPG Photonics i.e., IPG Photonics and JBG SMITH go up and down completely randomly.
Pair Corralation between IPG Photonics and JBG SMITH
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the JBG SMITH. In addition to that, IPG Photonics is 1.08 times more volatile than JBG SMITH Properties. It trades about 0.0 of its total potential returns per unit of risk. JBG SMITH Properties is currently generating about 0.0 per unit of volatility. If you would invest 1,818 in JBG SMITH Properties on August 24, 2024 and sell it today you would lose (161.00) from holding JBG SMITH Properties or give up 8.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IPG Photonics vs. JBG SMITH Properties
Performance |
| Timeline |
| IPG Photonics |
| JBG SMITH Properties |
IPG Photonics and JBG SMITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and JBG SMITH
The main advantage of trading using opposite IPG Photonics and JBG SMITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, JBG SMITH 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 JBG SMITH will offset losses from the drop in JBG SMITH's long position.| IPG Photonics vs. Cohu Inc | IPG Photonics vs. Entegris | IPG Photonics vs. Veeco Instruments | IPG Photonics vs. Ultra Clean Holdings |
| JBG SMITH vs. Cousins Properties Incorporated | JBG SMITH vs. Highwoods Properties | JBG SMITH vs. Douglas Emmett | JBG SMITH vs. Equity Commonwealth |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |