Correlation Between IPG Photonics and LS Starrett
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and LS Starrett 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 LS Starrett into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and The LS Starrett, you can compare the effects of market volatilities on IPG Photonics and LS Starrett 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 LS Starrett. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and LS Starrett.
Diversification Opportunities for IPG Photonics and LS Starrett
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and SCXLB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and The LS Starrett in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LS Starrett 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 LS Starrett. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LS Starrett has no effect on the direction of IPG Photonics i.e., IPG Photonics and LS Starrett go up and down completely randomly.
Pair Corralation between IPG Photonics and LS Starrett
If you would invest 1,100 in The LS Starrett on September 2, 2024 and sell it today you would earn a total of 0.00 from holding The LS Starrett or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 46.77% |
| Values | Daily Returns |
IPG Photonics vs. The LS Starrett
Performance |
| Timeline |
| IPG Photonics |
| LS Starrett |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPG Photonics and LS Starrett Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and LS Starrett
The main advantage of trading using opposite IPG Photonics and LS Starrett positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, LS Starrett 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 LS Starrett will offset losses from the drop in LS Starrett's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Entegris |
| LS Starrett vs. CECO Environmental Corp | LS Starrett vs. United States Steel | LS Starrett vs. Juniata Valley Financial | LS Starrett vs. LithiumBank Resources Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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