Correlation Between IPG Photonics and Space-Communication
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Space-Communication 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 Space-Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Space Communication, you can compare the effects of market volatilities on IPG Photonics and Space-Communication 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 Space-Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Space-Communication.
Diversification Opportunities for IPG Photonics and Space-Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of IPG Photonics i.e., IPG Photonics and Space-Communication go up and down completely randomly.
Pair Corralation between IPG Photonics and Space-Communication
If you would invest 20.00 in Space Communication on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Space Communication or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.68% |
| Values | Daily Returns |
IPG Photonics vs. Space Communication
Performance |
| Timeline |
| IPG Photonics |
| Space Communication |
IPG Photonics and Space-Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Space-Communication
The main advantage of trading using opposite IPG Photonics and Space-Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Space-Communication 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 Space-Communication will offset losses from the drop in Space-Communication's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Space-Communication vs. GATX Corporation | Space-Communication vs. Zoom Video Communications | Space-Communication vs. Todos Medical | Space-Communication vs. Warner Music Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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