Correlation Between IPG Photonics and CITIGROUP
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By analyzing existing cross correlation between IPG Photonics and CITIGROUP INC, you can compare the effects of market volatilities on IPG Photonics and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and CITIGROUP.
Diversification Opportunities for IPG Photonics and CITIGROUP
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPG and CITIGROUP is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC has no effect on the direction of IPG Photonics i.e., IPG Photonics and CITIGROUP go up and down completely randomly.
Pair Corralation between IPG Photonics and CITIGROUP
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the CITIGROUP. In addition to that, IPG Photonics is 2.85 times more volatile than CITIGROUP INC. It trades about -0.06 of its total potential returns per unit of risk. CITIGROUP INC is currently generating about -0.16 per unit of volatility. If you would invest 8,790 in CITIGROUP INC on September 3, 2024 and sell it today you would lose (215.00) from holding CITIGROUP INC or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
IPG Photonics vs. CITIGROUP INC
Performance |
| Timeline |
| IPG Photonics |
| CITIGROUP INC |
IPG Photonics and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and CITIGROUP
The main advantage of trading using opposite IPG Photonics and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| CITIGROUP vs. NI Holdings | CITIGROUP vs. Sun Life Financial | CITIGROUP vs. Algoma Steel Group | CITIGROUP vs. Olympic Steel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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