Correlation Between 279158AP4 and IPG Photonics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ecopetrol SA 4625 and IPG Photonics, you can compare the effects of market volatilities on 279158AP4 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 279158AP4 with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 279158AP4 and IPG Photonics.
Diversification Opportunities for 279158AP4 and IPG Photonics
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 279158AP4 and IPG is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ecopetrol SA 4625 and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and 279158AP4 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 Ecopetrol SA 4625 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 279158AP4 i.e., 279158AP4 and IPG Photonics go up and down completely randomly.
Pair Corralation between 279158AP4 and IPG Photonics
Assuming the 90 days trading horizon Ecopetrol SA 4625 is expected to generate 0.58 times more return on investment than IPG Photonics. However, Ecopetrol SA 4625 is 1.73 times less risky than IPG Photonics. It trades about 0.0 of its potential returns per unit of risk. IPG Photonics is currently generating about -0.02 per unit of risk. If you would invest 7,899 in Ecopetrol SA 4625 on September 3, 2024 and sell it today you would lose (445.00) from holding Ecopetrol SA 4625 or give up 5.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.53% |
| Values | Daily Returns |
Ecopetrol SA 4625 vs. IPG Photonics
Performance |
| Timeline |
| Ecopetrol SA 4625 |
| IPG Photonics |
279158AP4 and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 279158AP4 and IPG Photonics
The main advantage of trading using opposite 279158AP4 and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 279158AP4 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.| 279158AP4 vs. AEP TEX INC | 279158AP4 vs. US BANK NATIONAL | 279158AP4 vs. MetLife | 279158AP4 vs. Brera Holdings PLC |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |