Correlation Between CONSOLIDATED and IPG Photonics
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By analyzing existing cross correlation between CONSOLIDATED EDISON N and IPG Photonics, you can compare the effects of market volatilities on CONSOLIDATED 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 CONSOLIDATED with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED and IPG Photonics.
Diversification Opportunities for CONSOLIDATED and IPG Photonics
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CONSOLIDATED and IPG is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED EDISON N and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and CONSOLIDATED 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 CONSOLIDATED EDISON N 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 CONSOLIDATED i.e., CONSOLIDATED and IPG Photonics go up and down completely randomly.
Pair Corralation between CONSOLIDATED and IPG Photonics
Assuming the 90 days trading horizon CONSOLIDATED EDISON N is expected to under-perform the IPG Photonics. But the bond apears to be less risky and, when comparing its historical volatility, CONSOLIDATED EDISON N is 3.07 times less risky than IPG Photonics. The bond trades about -0.12 of its potential returns per unit of risk. The IPG Photonics is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,411 in IPG Photonics on October 10, 2024 and sell it today you would earn a total of 70.00 from holding IPG Photonics or generate 0.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 77.05% |
Values | Daily Returns |
CONSOLIDATED EDISON N vs. IPG Photonics
Performance |
Timeline |
CONSOLIDATED EDISON |
IPG Photonics |
CONSOLIDATED and IPG Photonics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CONSOLIDATED and IPG Photonics
The main advantage of trading using opposite CONSOLIDATED and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED 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.CONSOLIDATED vs. Ballys Corp | CONSOLIDATED vs. Park Hotels Resorts | CONSOLIDATED vs. NH Foods Ltd | CONSOLIDATED vs. Marfrig Global Foods |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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