Correlation Between IPG Photonics and EnLink
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By analyzing existing cross correlation between IPG Photonics and EnLink Midstream Partners, you can compare the effects of market volatilities on IPG Photonics and EnLink 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 EnLink. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and EnLink.
Diversification Opportunities for IPG Photonics and EnLink
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IPG and EnLink is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and EnLink Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnLink Midstream Partners 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 EnLink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnLink Midstream Partners has no effect on the direction of IPG Photonics i.e., IPG Photonics and EnLink go up and down completely randomly.
Pair Corralation between IPG Photonics and EnLink
Given the investment horizon of 90 days IPG Photonics is expected to under-perform the EnLink. In addition to that, IPG Photonics is 4.59 times more volatile than EnLink Midstream Partners. It trades about -0.06 of its total potential returns per unit of risk. EnLink Midstream Partners is currently generating about -0.12 per unit of volatility. If you would invest 9,963 in EnLink Midstream Partners on December 30, 2024 and sell it today you would lose (362.00) from holding EnLink Midstream Partners or give up 3.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
IPG Photonics vs. EnLink Midstream Partners
Performance |
Timeline |
IPG Photonics |
EnLink Midstream Partners |
IPG Photonics and EnLink Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IPG Photonics and EnLink
The main advantage of trading using opposite IPG Photonics and EnLink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, EnLink 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 EnLink will offset losses from the drop in EnLink's long position.IPG Photonics vs. Teradyne | IPG Photonics vs. Ultra Clean Holdings | IPG Photonics vs. Onto Innovation | IPG Photonics vs. Cohu Inc |
EnLink vs. Yoshitsu Co Ltd | EnLink vs. Cedar Realty Trust | EnLink vs. Simon Property Group | EnLink vs. Cosan SA ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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