Correlation Between MYLAN and IPG Photonics
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By analyzing existing cross correlation between MYLAN N V and IPG Photonics, you can compare the effects of market volatilities on MYLAN 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 MYLAN with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MYLAN and IPG Photonics.
Diversification Opportunities for MYLAN and IPG Photonics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MYLAN and IPG is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding MYLAN N V and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and MYLAN 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 MYLAN N V 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 MYLAN i.e., MYLAN and IPG Photonics go up and down completely randomly.
Pair Corralation between MYLAN and IPG Photonics
Assuming the 90 days trading horizon MYLAN N V is expected to under-perform the IPG Photonics. But the bond apears to be less risky and, when comparing its historical volatility, MYLAN N V is 1.56 times less risky than IPG Photonics. The bond trades about -0.02 of its potential returns per unit of risk. The IPG Photonics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,543 in IPG Photonics on September 3, 2024 and sell it today you would earn a total of 1,261 from holding IPG Photonics or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MYLAN N V vs. IPG Photonics
Performance |
| Timeline |
| MYLAN N V |
| IPG Photonics |
MYLAN and IPG Photonics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MYLAN and IPG Photonics
The main advantage of trading using opposite MYLAN and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYLAN 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.| MYLAN vs. IPG Photonics | MYLAN vs. ASE Industrial Holding | MYLAN vs. Elmos Semiconductor SE | MYLAN vs. Solstad Offshore ASA |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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