Correlation Between Impinj and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Impinj and MIE HOLDINGS 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 Impinj and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and MIE HOLDINGS, you can compare the effects of market volatilities on Impinj and MIE HOLDINGS 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 Impinj with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and MIE HOLDINGS.
Diversification Opportunities for Impinj and MIE HOLDINGS
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and MIE is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and Impinj 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 Impinj Inc are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of Impinj i.e., Impinj and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between Impinj and MIE HOLDINGS
Assuming the 90 days horizon Impinj Inc is expected to under-perform the MIE HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, Impinj Inc is 21.49 times less risky than MIE HOLDINGS. The stock trades about -0.01 of its potential returns per unit of risk. The MIE HOLDINGS is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.05 in MIE HOLDINGS on August 30, 2024 and sell it today you would earn a total of 0.00 from holding MIE HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Impinj Inc vs. MIE HOLDINGS
Performance |
| Timeline |
| Impinj Inc |
| MIE HOLDINGS |
Impinj and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and MIE HOLDINGS
The main advantage of trading using opposite Impinj and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.| Impinj vs. SEI INVESTMENTS | Impinj vs. PennantPark Investment | Impinj vs. Science Applications International | Impinj vs. Chuangs China Investments |
| MIE HOLDINGS vs. TAL Education Group | MIE HOLDINGS vs. Laureate Education | MIE HOLDINGS vs. STRAYER EDUCATION | MIE HOLDINGS vs. ULTRA CLEAN HLDGS |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |