Correlation Between IPG Photonics and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Nok Airlines 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 Nok Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Nok Airlines Public, you can compare the effects of market volatilities on IPG Photonics and Nok Airlines 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 Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Nok Airlines.
Diversification Opportunities for IPG Photonics and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Nok Airlines Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines Public 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 Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines Public has no effect on the direction of IPG Photonics i.e., IPG Photonics and Nok Airlines go up and down completely randomly.
Pair Corralation between IPG Photonics and Nok Airlines
If you would invest 6,543 in IPG Photonics on September 3, 2024 and sell it today you would earn a total of 1,261 from holding IPG Photonics or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IPG Photonics vs. Nok Airlines Public
Performance |
| Timeline |
| IPG Photonics |
| Nok Airlines Public |
IPG Photonics and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Nok Airlines
The main advantage of trading using opposite IPG Photonics and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Nok Airlines vs. Finnair Oyj | Nok Airlines vs. easyJet plc | Nok Airlines vs. Norse Atlantic ASA | Nok Airlines vs. Air New Zealand |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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