Correlation Between Impinj and Tsingtao Brewery
Can any of the company-specific risk be diversified away by investing in both Impinj and Tsingtao Brewery 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 Tsingtao Brewery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Tsingtao Brewery, you can compare the effects of market volatilities on Impinj and Tsingtao Brewery 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 Tsingtao Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Tsingtao Brewery.
Diversification Opportunities for Impinj and Tsingtao Brewery
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and Tsingtao is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Tsingtao Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsingtao Brewery 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 Tsingtao Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsingtao Brewery has no effect on the direction of Impinj i.e., Impinj and Tsingtao Brewery go up and down completely randomly.
Pair Corralation between Impinj and Tsingtao Brewery
Assuming the 90 days horizon Impinj Inc is expected to generate 1.33 times more return on investment than Tsingtao Brewery. However, Impinj is 1.33 times more volatile than Tsingtao Brewery. It trades about 0.07 of its potential returns per unit of risk. Tsingtao Brewery is currently generating about 0.0 per unit of risk. If you would invest 17,315 in Impinj Inc on September 1, 2024 and sell it today you would earn a total of 625.00 from holding Impinj Inc or generate 3.61% 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. Tsingtao Brewery
Performance |
| Timeline |
| Impinj Inc |
| Tsingtao Brewery |
Impinj and Tsingtao Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Tsingtao Brewery
The main advantage of trading using opposite Impinj and Tsingtao Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Tsingtao Brewery 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 Tsingtao Brewery will offset losses from the drop in Tsingtao Brewery's long position.| Impinj vs. MAVEN WIRELESS SWEDEN | Impinj vs. POWER METALS | Impinj vs. SOFI TECHNOLOGIES | Impinj vs. ARDAGH METAL PACDL 0001 |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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