Correlation Between IPG Photonics and COMCAST
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By analyzing existing cross correlation between IPG Photonics and COMCAST PORATION, you can compare the effects of market volatilities on IPG Photonics and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and COMCAST.
Diversification Opportunities for IPG Photonics and COMCAST
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPG and COMCAST is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and COMCAST PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST PORATION 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST PORATION has no effect on the direction of IPG Photonics i.e., IPG Photonics and COMCAST go up and down completely randomly.
Pair Corralation between IPG Photonics and COMCAST
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the COMCAST. In addition to that, IPG Photonics is 1.35 times more volatile than COMCAST PORATION. It trades about -0.02 of its total potential returns per unit of risk. COMCAST PORATION is currently generating about 0.02 per unit of volatility. If you would invest 7,467 in COMCAST PORATION on September 14, 2024 and sell it today you would earn a total of 369.00 from holding COMCAST PORATION or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
IPG Photonics vs. COMCAST PORATION
Performance |
| Timeline |
| IPG Photonics |
| COMCAST PORATION |
IPG Photonics and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and COMCAST
The main advantage of trading using opposite IPG Photonics and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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