Correlation Between IPG Photonics and Juniata Valley
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Juniata Valley 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 Juniata Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Juniata Valley Financial, you can compare the effects of market volatilities on IPG Photonics and Juniata Valley 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 Juniata Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Juniata Valley.
Diversification Opportunities for IPG Photonics and Juniata Valley
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between IPG and Juniata is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Juniata Valley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juniata Valley Financial 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 Juniata Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juniata Valley Financial has no effect on the direction of IPG Photonics i.e., IPG Photonics and Juniata Valley go up and down completely randomly.
Pair Corralation between IPG Photonics and Juniata Valley
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the Juniata Valley. In addition to that, IPG Photonics is 1.18 times more volatile than Juniata Valley Financial. It trades about -0.14 of its total potential returns per unit of risk. Juniata Valley Financial is currently generating about 0.14 per unit of volatility. If you would invest 1,205 in Juniata Valley Financial on August 31, 2024 and sell it today you would earn a total of 70.00 from holding Juniata Valley Financial or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IPG Photonics vs. Juniata Valley Financial
Performance |
| Timeline |
| IPG Photonics |
| Juniata Valley Financial |
IPG Photonics and Juniata Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Juniata Valley
The main advantage of trading using opposite IPG Photonics and Juniata Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Juniata Valley 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 Juniata Valley will offset losses from the drop in Juniata Valley's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Juniata Valley vs. FNB Inc | Juniata Valley vs. Apollo Bancorp | Juniata Valley vs. Commercial National Financial | Juniata Valley vs. Eastern Michigan Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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