Correlation Between IPG Photonics and 279158AP4
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By analyzing existing cross correlation between IPG Photonics and Ecopetrol SA 4625, you can compare the effects of market volatilities on IPG Photonics and 279158AP4 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 279158AP4. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and 279158AP4.
Diversification Opportunities for IPG Photonics and 279158AP4
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPG and 279158AP4 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Ecopetrol SA 4625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopetrol SA 4625 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 279158AP4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopetrol SA 4625 has no effect on the direction of IPG Photonics i.e., IPG Photonics and 279158AP4 go up and down completely randomly.
Pair Corralation between IPG Photonics and 279158AP4
Given the investment horizon of 90 days IPG Photonics is expected to generate 0.89 times more return on investment than 279158AP4. However, IPG Photonics is 1.12 times less risky than 279158AP4. It trades about -0.07 of its potential returns per unit of risk. Ecopetrol SA 4625 is currently generating about -0.18 per unit of risk. If you would invest 8,096 in IPG Photonics on September 1, 2024 and sell it today you would lose (292.00) from holding IPG Photonics or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IPG Photonics vs. Ecopetrol SA 4625
Performance |
| Timeline |
| IPG Photonics |
| Ecopetrol SA 4625 |
IPG Photonics and 279158AP4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and 279158AP4
The main advantage of trading using opposite IPG Photonics and 279158AP4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, 279158AP4 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 279158AP4 will offset losses from the drop in 279158AP4's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| 279158AP4 vs. ATT Inc | 279158AP4 vs. Home Depot | 279158AP4 vs. Cisco Systems | 279158AP4 vs. Dupont De Nemours |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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