Correlation Between Impinj and KEPPEL CORP
Can any of the company-specific risk be diversified away by investing in both Impinj and KEPPEL CORP 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 KEPPEL CORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and KEPPEL P , you can compare the effects of market volatilities on Impinj and KEPPEL CORP 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 KEPPEL CORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and KEPPEL CORP.
Diversification Opportunities for Impinj and KEPPEL CORP
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and KEPPEL is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and KEPPEL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEPPEL CORP 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 KEPPEL CORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEPPEL CORP has no effect on the direction of Impinj i.e., Impinj and KEPPEL CORP go up and down completely randomly.
Pair Corralation between Impinj and KEPPEL CORP
Assuming the 90 days horizon Impinj Inc is expected to under-perform the KEPPEL CORP. In addition to that, Impinj is 3.61 times more volatile than KEPPEL P . It trades about -0.01 of its total potential returns per unit of risk. KEPPEL P is currently generating about 0.22 per unit of volatility. If you would invest 451.00 in KEPPEL P on August 28, 2024 and sell it today you would earn a total of 19.00 from holding KEPPEL P or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Impinj Inc vs. KEPPEL P
Performance |
| Timeline |
| Impinj Inc |
| KEPPEL CORP |
Impinj and KEPPEL CORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and KEPPEL CORP
The main advantage of trading using opposite Impinj and KEPPEL CORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, KEPPEL CORP 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 KEPPEL CORP will offset losses from the drop in KEPPEL CORP's long position.The idea behind Impinj Inc and KEPPEL P pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| KEPPEL CORP vs. GigaMedia | KEPPEL CORP vs. Ubisoft Entertainment SA | KEPPEL CORP vs. PT Global Mediacom | KEPPEL CORP vs. Universal Entertainment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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