Correlation Between Fernhill Beverage and IPG Photonics
Can any of the company-specific risk be diversified away by investing in both Fernhill Beverage and IPG Photonics 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 Fernhill Beverage and IPG Photonics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fernhill Beverage and IPG Photonics, you can compare the effects of market volatilities on Fernhill Beverage 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 Fernhill Beverage with a short position of IPG Photonics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fernhill Beverage and IPG Photonics.
Diversification Opportunities for Fernhill Beverage and IPG Photonics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fernhill and IPG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fernhill Beverage and IPG Photonics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPG Photonics and Fernhill Beverage 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 Fernhill Beverage 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 Fernhill Beverage i.e., Fernhill Beverage and IPG Photonics go up and down completely randomly.
Pair Corralation between Fernhill Beverage and IPG Photonics
If you would invest 7,114 in IPG Photonics on September 24, 2024 and sell it today you would earn a total of 270.00 from holding IPG Photonics or generate 3.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Fernhill Beverage vs. IPG Photonics
Performance |
Timeline |
Fernhill Beverage |
IPG Photonics |
Fernhill Beverage and IPG Photonics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fernhill Beverage and IPG Photonics
The main advantage of trading using opposite Fernhill Beverage and IPG Photonics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fernhill Beverage 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.Fernhill Beverage vs. The Coca Cola | Fernhill Beverage vs. PepsiCo | Fernhill Beverage vs. Nongfu Spring Co | Fernhill Beverage vs. Monster Beverage Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Transaction History View history of all your transactions and understand their impact on performance | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |