Correlation Between ENBRIDGE and IPG Photonics
Specify exactly 2 symbols:
By analyzing existing cross correlation between ENBRIDGE INC 55 and IPG Photonics, you can compare the effects of market volatilities on ENBRIDGE 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 ENBRIDGE with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENBRIDGE and IPG Photonics.
Diversification Opportunities for ENBRIDGE and IPG Photonics
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENBRIDGE and IPG is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding ENBRIDGE INC 55 and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and ENBRIDGE 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 ENBRIDGE INC 55 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 ENBRIDGE i.e., ENBRIDGE and IPG Photonics go up and down completely randomly.
Pair Corralation between ENBRIDGE and IPG Photonics
Assuming the 90 days trading horizon ENBRIDGE INC 55 is expected to generate 0.32 times more return on investment than IPG Photonics. However, ENBRIDGE INC 55 is 3.08 times less risky than IPG Photonics. It trades about 0.26 of its potential returns per unit of risk. IPG Photonics is currently generating about -0.09 per unit of risk. If you would invest 9,395 in ENBRIDGE INC 55 on November 9, 2024 and sell it today you would earn a total of 209.00 from holding ENBRIDGE INC 55 or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
ENBRIDGE INC 55 vs. IPG Photonics
Performance |
| Timeline |
| ENBRIDGE INC 55 |
| IPG Photonics |
ENBRIDGE and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENBRIDGE and IPG Photonics
The main advantage of trading using opposite ENBRIDGE and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENBRIDGE 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.| ENBRIDGE vs. Artisan Partners Asset | ENBRIDGE vs. Paysafe | ENBRIDGE vs. Alvotech | ENBRIDGE vs. Asure Software |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |