Correlation Between Panglobal Brands and IPG Photonics
Can any of the company-specific risk be diversified away by investing in both Panglobal Brands and IPG Photonics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Panglobal Brands and IPG Photonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panglobal Brands and IPG Photonics, you can compare the effects of market volatilities on Panglobal Brands and IPG Photonics 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 Panglobal Brands with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panglobal Brands and IPG Photonics.
Diversification Opportunities for Panglobal Brands and IPG Photonics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panglobal and IPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panglobal Brands and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and Panglobal Brands 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 Panglobal Brands are associated (or correlated) with IPG Photonics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPG Photonics has no effect on the direction of Panglobal Brands i.e., Panglobal Brands and IPG Photonics go up and down completely randomly.
Pair Corralation between Panglobal Brands and IPG Photonics
If you would invest 0.01 in Panglobal Brands on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Panglobal Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 10.1% |
| Values | Daily Returns |
Panglobal Brands vs. IPG Photonics
Performance |
| Timeline |
| Panglobal Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IPG Photonics |
Panglobal Brands and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panglobal Brands and IPG Photonics
The main advantage of trading using opposite Panglobal Brands and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panglobal Brands position performs unexpectedly, IPG Photonics 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 IPG Photonics will offset losses from the drop in IPG Photonics' long position.| Panglobal Brands vs. Delek Drilling | Panglobal Brands vs. Timken Company | Panglobal Brands vs. Steven Madden | Panglobal Brands vs. Seadrill Limited |
| IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |