Correlation Between Impinj and Carmat SA
Can any of the company-specific risk be diversified away by investing in both Impinj and Carmat SA 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 Carmat SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Carmat SA, you can compare the effects of market volatilities on Impinj and Carmat SA 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 Carmat SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Carmat SA.
Diversification Opportunities for Impinj and Carmat SA
Excellent diversification
The 3 months correlation between Impinj and Carmat is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Carmat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carmat SA 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 Carmat SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carmat SA has no effect on the direction of Impinj i.e., Impinj and Carmat SA go up and down completely randomly.
Pair Corralation between Impinj and Carmat SA
Assuming the 90 days horizon Impinj Inc is expected to generate 0.58 times more return on investment than Carmat SA. However, Impinj Inc is 1.74 times less risky than Carmat SA. It trades about 0.12 of its potential returns per unit of risk. Carmat SA is currently generating about -0.18 per unit of risk. If you would invest 14,390 in Impinj Inc on September 3, 2024 and sell it today you would earn a total of 3,550 from holding Impinj Inc or generate 24.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. Carmat SA
Performance |
| Timeline |
| Impinj Inc |
| Carmat SA |
Impinj and Carmat SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Carmat SA
The main advantage of trading using opposite Impinj and Carmat SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Carmat SA 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 Carmat SA will offset losses from the drop in Carmat SA's long position.| Impinj vs. CSSC Offshore Marine | Impinj vs. COSMOSTEEL HLDGS | Impinj vs. CosmoSteel Holdings Limited | Impinj vs. RELIANCE STEEL AL |
| Carmat SA vs. USWE SPORTS AB | Carmat SA vs. PUBLIC STORAGE PRFO | Carmat SA vs. Playa Hotels Resorts | Carmat SA vs. National Storage Affiliates |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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