Correlation Between IPG Photonics and 88579YAV3
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By analyzing existing cross correlation between IPG Photonics and 3M 225 percent, you can compare the effects of market volatilities on IPG Photonics and 88579YAV3 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 88579YAV3. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and 88579YAV3.
Diversification Opportunities for IPG Photonics and 88579YAV3
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPG and 88579YAV3 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and 3M 225 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M 225 percent 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 88579YAV3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M 225 percent has no effect on the direction of IPG Photonics i.e., IPG Photonics and 88579YAV3 go up and down completely randomly.
Pair Corralation between IPG Photonics and 88579YAV3
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the 88579YAV3. In addition to that, IPG Photonics is 4.62 times more volatile than 3M 225 percent. It trades about 0.0 of its total potential returns per unit of risk. 3M 225 percent is currently generating about 0.0 per unit of volatility. If you would invest 9,344 in 3M 225 percent on September 4, 2024 and sell it today you would earn a total of 0.00 from holding 3M 225 percent or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.94% |
| Values | Daily Returns |
IPG Photonics vs. 3M 225 percent
Performance |
| Timeline |
| IPG Photonics |
| 3M 225 percent |
IPG Photonics and 88579YAV3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPG Photonics and 88579YAV3
The main advantage of trading using opposite IPG Photonics and 88579YAV3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, 88579YAV3 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 88579YAV3 will offset losses from the drop in 88579YAV3's long position.| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
| 88579YAV3 vs. Old Republic International | 88579YAV3 vs. Playtika Holding Corp | 88579YAV3 vs. Cincinnati Financial | 88579YAV3 vs. ScanSource |
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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