Correlation Between AMGEN and IPG Photonics
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By analyzing existing cross correlation between AMGEN INC and IPG Photonics, you can compare the effects of market volatilities on AMGEN 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 AMGEN with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMGEN and IPG Photonics.
Diversification Opportunities for AMGEN and IPG Photonics
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMGEN and IPG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding AMGEN INC and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and AMGEN 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 AMGEN INC 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 AMGEN i.e., AMGEN and IPG Photonics go up and down completely randomly.
Pair Corralation between AMGEN and IPG Photonics
Assuming the 90 days trading horizon AMGEN INC is expected to generate 0.46 times more return on investment than IPG Photonics. However, AMGEN INC is 2.2 times less risky than IPG Photonics. It trades about -0.06 of its potential returns per unit of risk. IPG Photonics is currently generating about -0.09 per unit of risk. If you would invest 6,651 in AMGEN INC on September 12, 2024 and sell it today you would lose (75.00) from holding AMGEN INC or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
AMGEN INC vs. IPG Photonics
Performance |
| Timeline |
| AMGEN INC |
| IPG Photonics |
AMGEN and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMGEN and IPG Photonics
The main advantage of trading using opposite AMGEN and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMGEN 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.| AMGEN vs. Aris Water Solutions | AMGEN vs. Vita Coco | AMGEN vs. GE Vernova LLC | AMGEN vs. Anheuser Busch Inbev |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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