Correlation Between IPG Photonics and Oasis Hotel
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and Oasis Hotel 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 Oasis Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and Oasis Hotel Resort, you can compare the effects of market volatilities on IPG Photonics and Oasis Hotel 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 Oasis Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and Oasis Hotel.
Diversification Opportunities for IPG Photonics and Oasis Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and Oasis Hotel Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Hotel Resort 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 Oasis Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Hotel Resort has no effect on the direction of IPG Photonics i.e., IPG Photonics and Oasis Hotel go up and down completely randomly.
Pair Corralation between IPG Photonics and Oasis Hotel
If you would invest 7,682 in IPG Photonics on September 25, 2024 and sell it today you would lose (85.50) from holding IPG Photonics or give up 1.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 97.62% |
Values | Daily Returns |
IPG Photonics vs. Oasis Hotel Resort
Performance |
Timeline |
IPG Photonics |
Oasis Hotel Resort |
IPG Photonics and Oasis Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IPG Photonics and Oasis Hotel
The main advantage of trading using opposite IPG Photonics and Oasis Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, Oasis Hotel 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 Oasis Hotel will offset losses from the drop in Oasis Hotel's long position.IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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