Correlation Between IPG Photonics and OCCIDENTAL
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By analyzing existing cross correlation between IPG Photonics and OCCIDENTAL PETE P, you can compare the effects of market volatilities on IPG Photonics and OCCIDENTAL 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 OCCIDENTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and OCCIDENTAL.
Diversification Opportunities for IPG Photonics and OCCIDENTAL
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPG and OCCIDENTAL is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and OCCIDENTAL PETE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCCIDENTAL PETE P 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 OCCIDENTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCCIDENTAL PETE P has no effect on the direction of IPG Photonics i.e., IPG Photonics and OCCIDENTAL go up and down completely randomly.
Pair Corralation between IPG Photonics and OCCIDENTAL
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the OCCIDENTAL. In addition to that, IPG Photonics is 2.06 times more volatile than OCCIDENTAL PETE P. It trades about -0.12 of its total potential returns per unit of risk. OCCIDENTAL PETE P is currently generating about 0.0 per unit of volatility. If you would invest 7,174 in OCCIDENTAL PETE P on September 5, 2024 and sell it today you would lose (9.00) from holding OCCIDENTAL PETE P or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
IPG Photonics vs. OCCIDENTAL PETE P
Performance |
| Timeline |
| IPG Photonics |
| OCCIDENTAL PETE P |
IPG Photonics and OCCIDENTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and OCCIDENTAL
The main advantage of trading using opposite IPG Photonics and OCCIDENTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, OCCIDENTAL 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 OCCIDENTAL will offset losses from the drop in OCCIDENTAL's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| OCCIDENTAL vs. Elmos Semiconductor SE | OCCIDENTAL vs. Tower Semiconductor | OCCIDENTAL vs. IPG Photonics | OCCIDENTAL vs. Everspin Technologies |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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