Correlation Between Impinj and STMICROELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Impinj and STMICROELECTRONICS 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 STMICROELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and STMICROELECTRONICS, you can compare the effects of market volatilities on Impinj and STMICROELECTRONICS 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 STMICROELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and STMICROELECTRONICS.
Diversification Opportunities for Impinj and STMICROELECTRONICS
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Impinj and STMICROELECTRONICS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and STMICROELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STMICROELECTRONICS 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 STMICROELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STMICROELECTRONICS has no effect on the direction of Impinj i.e., Impinj and STMICROELECTRONICS go up and down completely randomly.
Pair Corralation between Impinj and STMICROELECTRONICS
Assuming the 90 days horizon Impinj Inc is expected to generate 1.47 times more return on investment than STMICROELECTRONICS. However, Impinj is 1.47 times more volatile than STMICROELECTRONICS. It trades about 0.01 of its potential returns per unit of risk. STMICROELECTRONICS is currently generating about -0.08 per unit of risk. If you would invest 12,200 in Impinj Inc on November 3, 2024 and sell it today you would lose (50.00) from holding Impinj Inc or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. STMICROELECTRONICS
Performance |
| Timeline |
| Impinj Inc |
| STMICROELECTRONICS |
Impinj and STMICROELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and STMICROELECTRONICS
The main advantage of trading using opposite Impinj and STMICROELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, STMICROELECTRONICS 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 STMICROELECTRONICS will offset losses from the drop in STMICROELECTRONICS's long position.| Impinj vs. MidCap Financial Investment | Impinj vs. AOYAMA TRADING | Impinj vs. ELL ENVIRONHLDGS HD 0001 | Impinj vs. Guangdong Investment Limited |
| STMICROELECTRONICS vs. GWILLI FOOD | STMICROELECTRONICS vs. SENECA FOODS A | STMICROELECTRONICS vs. Nomad Foods | STMICROELECTRONICS vs. X FAB Silicon Foundries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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