Correlation Between Impinj and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both Impinj and FEMALE HEALTH 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 FEMALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and FEMALE HEALTH, you can compare the effects of market volatilities on Impinj and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and FEMALE HEALTH.
Diversification Opportunities for Impinj and FEMALE HEALTH
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and FEMALE is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of Impinj i.e., Impinj and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between Impinj and FEMALE HEALTH
Assuming the 90 days horizon Impinj Inc is expected to generate 0.55 times more return on investment than FEMALE HEALTH. However, Impinj Inc is 1.82 times less risky than FEMALE HEALTH. It trades about 0.09 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about 0.01 per unit of risk. If you would invest 7,680 in Impinj Inc on September 14, 2024 and sell it today you would earn a total of 7,260 from holding Impinj Inc or generate 94.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. FEMALE HEALTH
Performance |
| Timeline |
| Impinj Inc |
| FEMALE HEALTH |
Impinj and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and FEMALE HEALTH
The main advantage of trading using opposite Impinj and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| Impinj vs. FEMALE HEALTH | Impinj vs. Ramsay Health Care | Impinj vs. YOOMA WELLNESS INC | Impinj vs. Bausch Health Companies |
| FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple Inc | FEMALE HEALTH vs. Apple 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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