Correlation Between IPG Photonics and INTERNATIONAL
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By analyzing existing cross correlation between IPG Photonics and INTERNATIONAL BUSINESS MACHS, you can compare the effects of market volatilities on IPG Photonics and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and INTERNATIONAL.
Diversification Opportunities for IPG Photonics and INTERNATIONAL
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between IPG and INTERNATIONAL is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and INTERNATIONAL BUSINESS MACHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BUSINESS 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BUSINESS has no effect on the direction of IPG Photonics i.e., IPG Photonics and INTERNATIONAL go up and down completely randomly.
Pair Corralation between IPG Photonics and INTERNATIONAL
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the INTERNATIONAL. But the stock apears to be less risky and, when comparing its historical volatility, IPG Photonics is 41.2 times less risky than INTERNATIONAL. The stock trades about -0.01 of its potential returns per unit of risk. The INTERNATIONAL BUSINESS MACHS is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 9,427 in INTERNATIONAL BUSINESS MACHS on September 3, 2024 and sell it today you would lose (914.00) from holding INTERNATIONAL BUSINESS MACHS or give up 9.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 45.66% |
| Values | Daily Returns |
IPG Photonics vs. INTERNATIONAL BUSINESS MACHS
Performance |
| Timeline |
| IPG Photonics |
| INTERNATIONAL BUSINESS |
IPG Photonics and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and INTERNATIONAL
The main advantage of trading using opposite IPG Photonics and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| INTERNATIONAL vs. The Travelers Companies | INTERNATIONAL vs. GE Aerospace | INTERNATIONAL vs. Walmart | INTERNATIONAL vs. Pfizer 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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