Correlation Between ARAMARK and IPG Photonics
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By analyzing existing cross correlation between ARAMARK SVCS INC and IPG Photonics, you can compare the effects of market volatilities on ARAMARK 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 ARAMARK with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARAMARK and IPG Photonics.
Diversification Opportunities for ARAMARK and IPG Photonics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ARAMARK and IPG is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ARAMARK SVCS INC and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and ARAMARK 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 ARAMARK SVCS 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 ARAMARK i.e., ARAMARK and IPG Photonics go up and down completely randomly.
Pair Corralation between ARAMARK and IPG Photonics
Assuming the 90 days trading horizon ARAMARK SVCS INC is expected to generate 0.08 times more return on investment than IPG Photonics. However, ARAMARK SVCS INC is 12.95 times less risky than IPG Photonics. It trades about 0.01 of its potential returns per unit of risk. IPG Photonics is currently generating about -0.03 per unit of risk. If you would invest 9,913 in ARAMARK SVCS INC on September 4, 2024 and sell it today you would earn a total of 33.00 from holding ARAMARK SVCS INC or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 64.63% |
| Values | Daily Returns |
ARAMARK SVCS INC vs. IPG Photonics
Performance |
| Timeline |
| ARAMARK SVCS INC |
| IPG Photonics |
ARAMARK and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ARAMARK and IPG Photonics
The main advantage of trading using opposite ARAMARK and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ARAMARK 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.| ARAMARK vs. The Travelers Companies | ARAMARK vs. GE Aerospace | ARAMARK vs. Walmart | ARAMARK vs. Pfizer Inc |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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