Correlation Between IPG Photonics and ZAIS Group
Can any of the company-specific risk be diversified away by investing in both IPG Photonics and ZAIS Group 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 ZAIS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPG Photonics and ZAIS Group Holdings, you can compare the effects of market volatilities on IPG Photonics and ZAIS Group 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 ZAIS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPG Photonics and ZAIS Group.
Diversification Opportunities for IPG Photonics and ZAIS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IPG and ZAIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IPG Photonics and ZAIS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZAIS Group Holdings 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 ZAIS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZAIS Group Holdings has no effect on the direction of IPG Photonics i.e., IPG Photonics and ZAIS Group go up and down completely randomly.
Pair Corralation between IPG Photonics and ZAIS Group
If you would invest 8,645 in IPG Photonics on February 21, 2024 and sell it today you would earn a total of 210.00 from holding IPG Photonics or generate 2.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
IPG Photonics vs. ZAIS Group Holdings
Performance |
Timeline |
IPG Photonics |
ZAIS Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IPG Photonics and ZAIS Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IPG Photonics and ZAIS Group
The main advantage of trading using opposite IPG Photonics and ZAIS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPG Photonics position performs unexpectedly, ZAIS Group 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 ZAIS Group will offset losses from the drop in ZAIS Group's long position.IPG Photonics vs. Sumco Corp ADR | IPG Photonics vs. Lasertec | IPG Photonics vs. Asm Pacific Technology | IPG Photonics vs. Disco Corp ADR |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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