Correlation Between IPG Photonics and Tuxis
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Tuxis 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 Tuxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Tuxis, you can compare the effects of market volatilities on IPG Photonics and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Tuxis.
Diversification Opportunities for IPG Photonics and Tuxis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Tuxis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of IPG Photonics i.e., IPG Photonics and Tuxis go up and down completely randomly.
Pair Corralation between IPG Photonics and Tuxis
If you would invest (100.00) in Tuxis on December 10, 2024 and sell it today you would earn a total of 100.00 from holding Tuxis or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IPG Photonics vs. Tuxis
Performance |
| Timeline |
| IPG Photonics |
| Tuxis |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IPG Photonics and Tuxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and Tuxis
The main advantage of trading using opposite IPG Photonics and Tuxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Tuxis 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 Tuxis will offset losses from the drop in Tuxis' long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| Tuxis vs. Academy Sports Outdoors | Tuxis vs. Alternative Investment | Tuxis vs. Delek Logistics Partners | Tuxis vs. Aldel Financial II |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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