Correlation Between IPG Photonics and Norra Metals
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Norra Metals 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 Norra Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Norra Metals Corp, you can compare the effects of market volatilities on IPG Photonics and Norra Metals 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 Norra Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Norra Metals.
Diversification Opportunities for IPG Photonics and Norra Metals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Norra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Norra Metals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Norra Metals Corp 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 Norra Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Norra Metals Corp has no effect on the direction of IPG Photonics i.e., IPG Photonics and Norra Metals go up and down completely randomly.
Pair Corralation between IPG Photonics and Norra Metals
If you would invest 1.00 in Norra Metals Corp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Norra Metals Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
IPG Photonics vs. Norra Metals Corp
Performance |
| Timeline |
| IPG Photonics |
| Norra Metals Corp |
IPG Photonics and Norra Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Norra Metals
The main advantage of trading using opposite IPG Photonics and Norra Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Norra Metals 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 Norra Metals will offset losses from the drop in Norra Metals' long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Norra Metals vs. Valvoline | Norra Metals vs. Tradeweb Markets | Norra Metals vs. Arrow Electronics | Norra Metals vs. Upper Street Marketing |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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