Correlation Between IPG Photonics and NESNVX

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

By analyzing existing cross correlation between IPG Photonics and NESNVX 35 24 SEP 25, you can compare the effects of market volatilities on IPG Photonics and NESNVX 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 NESNVX. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and NESNVX.

Diversification Opportunities for IPG Photonics and NESNVX

-0.05

Correlation Coefficient

IPG Photonics  NESNVX

Good diversification

The 3 months correlation between IPG and NESNVX is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and NESNVX 35 24 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NESNVX 35 24 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 NESNVX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NESNVX 35 24 has no effect on the direction of IPG Photonics i.e., IPG Photonics and NESNVX go up and down completely randomly.

Pair Corralation between IPG Photonics and NESNVX

Given the investment horizon of 90 days IPG Photonics is expected to generate 3.03 times more return on investment than NESNVX. However, IPG Photonics is 3.03 times more volatile than NESNVX 35 24 SEP 25. It trades about 0.02 of its potential returns per unit of risk. NESNVX 35 24 SEP 25 is currently generating about -0.14 per unit of risk. If you would invest  7,682  in IPG Photonics on October 25, 2024 and sell it today you would earn a total of  98.00  from holding IPG Photonics or generate 1.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	35.59%
Values	Daily Returns

IPG Photonics  vs.  NESNVX 35 24 SEP 25

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.

NESNVX 35 24

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NESNVX 35 24 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NESNVX 35 24 SEP 25 investors.

Pair Trading with IPG Photonics and NESNVX

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

The idea behind IPG Photonics and NESNVX 35 24 SEP 25 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.