Correlation Between IPG Photonics and Apogee Therapeutics,

Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Apogee Therapeutics, 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 IPG Photonics and Apogee Therapeutics, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between IPG Photonics and Apogee Therapeutics, Common, you can compare the effects of market volatilities on IPG Photonics and Apogee Therapeutics, 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 IPG Photonics with a short position of Apogee Therapeutics,. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Apogee Therapeutics,.

Diversification Opportunities for IPG Photonics and Apogee Therapeutics,

0.42

Correlation Coefficient

IPG Photonics  Apogee Therapeutics,

Very weak diversification

The 3 months correlation between IPG and Apogee is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Apogee Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Therapeutics, and IPG Photonics 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 IPG Photonics are associated (or correlated) with Apogee Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Therapeutics, has no effect on the direction of IPG Photonics i.e., IPG Photonics and Apogee Therapeutics, go up and down completely randomly.

Pair Corralation between IPG Photonics and Apogee Therapeutics,

Given the investment horizon of 90 days IPG Photonics is expected to under-perform the Apogee Therapeutics,. But the stock apears to be less risky and, when comparing its historical volatility, IPG Photonics is 2.01 times less risky than Apogee Therapeutics,. The stock trades about -0.02 of its potential returns per unit of risk. The Apogee Therapeutics, Common is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,700  in Apogee Therapeutics, Common on October 10, 2024 and sell it today you would earn a total of  3,221  from holding Apogee Therapeutics, Common or generate 189.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	75.81%
Values	Daily Returns

IPG Photonics  vs.  Apogee Therapeutics, Common

IPG Photonics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IPG Photonics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, IPG Photonics is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Apogee Therapeutics,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apogee Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Apogee Therapeutics, is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IPG Photonics and Apogee Therapeutics,

The main advantage of trading using opposite IPG Photonics and Apogee Therapeutics, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Apogee Therapeutics, 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 Apogee Therapeutics, will offset losses from the drop in Apogee Therapeutics,'s long position.

The idea behind IPG Photonics and Apogee Therapeutics, Common pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.