Correlation Between IPG Photonics and 444859BU5
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By analyzing existing cross correlation between IPG Photonics and HUM 575 01 MAR 28, you can compare the effects of market volatilities on IPG Photonics and 444859BU5 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 444859BU5. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and 444859BU5.
Diversification Opportunities for IPG Photonics and 444859BU5
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPG and 444859BU5 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and HUM 575 01 MAR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUM 575 01 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 444859BU5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUM 575 01 has no effect on the direction of IPG Photonics i.e., IPG Photonics and 444859BU5 go up and down completely randomly.
Pair Corralation between IPG Photonics and 444859BU5
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the 444859BU5. In addition to that, IPG Photonics is 4.65 times more volatile than HUM 575 01 MAR 28. It trades about -0.07 of its total potential returns per unit of risk. HUM 575 01 MAR 28 is currently generating about 0.08 per unit of volatility. If you would invest 10,226 in HUM 575 01 MAR 28 on September 1, 2024 and sell it today you would earn a total of 75.00 from holding HUM 575 01 MAR 28 or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
IPG Photonics vs. HUM 575 01 MAR 28
Performance |
| Timeline |
| IPG Photonics |
| HUM 575 01 |
IPG Photonics and 444859BU5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and 444859BU5
The main advantage of trading using opposite IPG Photonics and 444859BU5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, 444859BU5 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 444859BU5 will offset losses from the drop in 444859BU5's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| 444859BU5 vs. Iridium Communications | 444859BU5 vs. IPG Photonics | 444859BU5 vs. Allient | 444859BU5 vs. Semtech |
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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