Correlation Between IPG Photonics and 49446RAY5
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By analyzing existing cross correlation between IPG Photonics and KIM 225 01 DEC 31, you can compare the effects of market volatilities on IPG Photonics and 49446RAY5 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 49446RAY5. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and 49446RAY5.
Diversification Opportunities for IPG Photonics and 49446RAY5
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between IPG and 49446RAY5 is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and KIM 225 01 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM 225 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 49446RAY5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM 225 01 has no effect on the direction of IPG Photonics i.e., IPG Photonics and 49446RAY5 go up and down completely randomly.
Pair Corralation between IPG Photonics and 49446RAY5
Given the investment horizon of 90 days IPG Photonics is expected to generate 1.85 times more return on investment than 49446RAY5. However, IPG Photonics is 1.85 times more volatile than KIM 225 01 DEC 31. It trades about -0.09 of its potential returns per unit of risk. KIM 225 01 DEC 31 is currently generating about -0.26 per unit of risk. If you would invest 8,193 in IPG Photonics on September 12, 2024 and sell it today you would lose (466.50) from holding IPG Photonics or give up 5.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
IPG Photonics vs. KIM 225 01 DEC 31
Performance |
| Timeline |
| IPG Photonics |
| KIM 225 01 |
IPG Photonics and 49446RAY5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and 49446RAY5
The main advantage of trading using opposite IPG Photonics and 49446RAY5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, 49446RAY5 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 49446RAY5 will offset losses from the drop in 49446RAY5's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| 49446RAY5 vs. AEP TEX INC | 49446RAY5 vs. US BANK NATIONAL | 49446RAY5 vs. Alphabet Inc Class C | 49446RAY5 vs. InMode |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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