Correlation Between CEIX Old and IPG Photonics
Can any of the company-specific risk be diversified away by investing in both CEIX Old and IPG Photonics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CEIX Old and IPG Photonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEIX Old and IPG Photonics, you can compare the effects of market volatilities on CEIX Old 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 CEIX Old with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEIX Old and IPG Photonics.
Diversification Opportunities for CEIX Old and IPG Photonics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CEIX and IPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CEIX Old and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and CEIX Old 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 CEIX Old 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 CEIX Old i.e., CEIX Old and IPG Photonics go up and down completely randomly.
Pair Corralation between CEIX Old and IPG Photonics
If you would invest (100.00) in CEIX Old on December 4, 2024 and sell it today you would earn a total of 100.00 from holding CEIX Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CEIX Old vs. IPG Photonics
Performance |
Timeline |
CEIX Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
IPG Photonics |
CEIX Old and IPG Photonics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CEIX Old and IPG Photonics
The main advantage of trading using opposite CEIX Old and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEIX Old 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.CEIX Old vs. Alliance Resource Partners | CEIX Old vs. Natural Resource Partners | CEIX Old vs. Hallador Energy | CEIX Old vs. NACCO 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |