Correlation Between 337738BE7 and IPG Photonics
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By analyzing existing cross correlation between FISV 56 02 MAR 33 and IPG Photonics, you can compare the effects of market volatilities on 337738BE7 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 337738BE7 with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of 337738BE7 and IPG Photonics.
Diversification Opportunities for 337738BE7 and IPG Photonics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 337738BE7 and IPG is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding FISV 56 02 MAR 33 and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and 337738BE7 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 FISV 56 02 MAR 33 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 337738BE7 i.e., 337738BE7 and IPG Photonics go up and down completely randomly.
Pair Corralation between 337738BE7 and IPG Photonics
Assuming the 90 days trading horizon FISV 56 02 MAR 33 is expected to generate 0.31 times more return on investment than IPG Photonics. However, FISV 56 02 MAR 33 is 3.2 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 0.0 per unit of risk. If you would invest 10,271 in FISV 56 02 MAR 33 on August 25, 2024 and sell it today you would earn a total of 219.00 from holding FISV 56 02 MAR 33 or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 83.9% |
| Values | Daily Returns |
FISV 56 02 MAR 33 vs. IPG Photonics
Performance |
| Timeline |
| FISV 56 02 |
| IPG Photonics |
337738BE7 and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 337738BE7 and IPG Photonics
The main advantage of trading using opposite 337738BE7 and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 337738BE7 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.| 337738BE7 vs. IPG Photonics | 337738BE7 vs. Amkor Technology | 337738BE7 vs. MI Homes | 337738BE7 vs. KVH Industries |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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