Correlation Between IPG Photonics and 80281LAQ8
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By analyzing existing cross correlation between IPG Photonics and SANTANDER UK GROUP, you can compare the effects of market volatilities on IPG Photonics and 80281LAQ8 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 80281LAQ8. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and 80281LAQ8.
Diversification Opportunities for IPG Photonics and 80281LAQ8
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IPG and 80281LAQ8 is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and SANTANDER UK GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK GROUP 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 80281LAQ8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK GROUP has no effect on the direction of IPG Photonics i.e., IPG Photonics and 80281LAQ8 go up and down completely randomly.
Pair Corralation between IPG Photonics and 80281LAQ8
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the 80281LAQ8. But the stock apears to be less risky and, when comparing its historical volatility, IPG Photonics is 23.7 times less risky than 80281LAQ8. The stock trades about 0.0 of its potential returns per unit of risk. The SANTANDER UK GROUP is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 8,568 in SANTANDER UK GROUP on September 12, 2024 and sell it today you would earn a total of 123.00 from holding SANTANDER UK GROUP or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 67.88% |
| Values | Daily Returns |
IPG Photonics vs. SANTANDER UK GROUP
Performance |
| Timeline |
| IPG Photonics |
| SANTANDER UK GROUP |
IPG Photonics and 80281LAQ8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and 80281LAQ8
The main advantage of trading using opposite IPG Photonics and 80281LAQ8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, 80281LAQ8 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 80281LAQ8 will offset losses from the drop in 80281LAQ8's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| 80281LAQ8 vs. Haverty Furniture Companies | 80281LAQ8 vs. Apogee Enterprises | 80281LAQ8 vs. IPG Photonics | 80281LAQ8 vs. Chemours Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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