Correlation Between IPG Photonics and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Mountain Crest 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 Mountain Crest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Mountain Crest Acquisition, you can compare the effects of market volatilities on IPG Photonics and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Mountain Crest.
Diversification Opportunities for IPG Photonics and Mountain Crest
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPG and Mountain is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of IPG Photonics i.e., IPG Photonics and Mountain Crest go up and down completely randomly.
Pair Corralation between IPG Photonics and Mountain Crest
If you would invest 7,833 in IPG Photonics on September 13, 2024 and sell it today you would lose (21.00) from holding IPG Photonics or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IPG Photonics vs. Mountain Crest Acquisition
Performance |
| Timeline |
| IPG Photonics |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPG Photonics and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Mountain Crest
The main advantage of trading using opposite IPG Photonics and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Mountain Crest vs. Griffon | Mountain Crest vs. Sandstorm Gold Ltd | Mountain Crest vs. Delek Drilling | Mountain Crest vs. Papaya Growth Opportunity |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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