Correlation Between IPG Photonics and EMERA
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By analyzing existing cross correlation between IPG Photonics and EMERA FIN LP, you can compare the effects of market volatilities on IPG Photonics and EMERA 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 EMERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and EMERA.
Diversification Opportunities for IPG Photonics and EMERA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPG and EMERA is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and EMERA FIN LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMERA FIN LP 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 EMERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMERA FIN LP has no effect on the direction of IPG Photonics i.e., IPG Photonics and EMERA go up and down completely randomly.
Pair Corralation between IPG Photonics and EMERA
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the EMERA. But the stock apears to be less risky and, when comparing its historical volatility, IPG Photonics is 24.38 times less risky than EMERA. The stock trades about -0.05 of its potential returns per unit of risk. The EMERA FIN LP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,101 in EMERA FIN LP on September 12, 2024 and sell it today you would lose (53.00) from holding EMERA FIN LP or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
IPG Photonics vs. EMERA FIN LP
Performance |
| Timeline |
| IPG Photonics |
| EMERA FIN LP |
IPG Photonics and EMERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and EMERA
The main advantage of trading using opposite IPG Photonics and EMERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, EMERA 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 EMERA will offset losses from the drop in EMERA's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| EMERA vs. AEP TEX INC | EMERA vs. US BANK NATIONAL | EMERA vs. Recursion Pharmaceuticals | EMERA vs. SoundHound AI |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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