Correlation Between Impinj and Global Ship
Can any of the company-specific risk be diversified away by investing in both Impinj and Global Ship 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 Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Global Ship Lease, you can compare the effects of market volatilities on Impinj and Global Ship 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 Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Global Ship.
Diversification Opportunities for Impinj and Global Ship
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Impinj and Global is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Impinj i.e., Impinj and Global Ship go up and down completely randomly.
Pair Corralation between Impinj and Global Ship
Assuming the 90 days trading horizon Impinj Inc is expected to under-perform the Global Ship. In addition to that, Impinj is 1.79 times more volatile than Global Ship Lease. It trades about -0.02 of its total potential returns per unit of risk. Global Ship Lease is currently generating about -0.01 per unit of volatility. If you would invest 2,227 in Global Ship Lease on October 21, 2024 and sell it today you would lose (79.00) from holding Global Ship Lease or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. Global Ship Lease
Performance |
| Timeline |
| Impinj Inc |
| Global Ship Lease |
Impinj and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Global Ship
The main advantage of trading using opposite Impinj and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.The idea behind Impinj Inc and Global Ship Lease 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.| Global Ship vs. CEOTRONICS | Global Ship vs. SEI INVESTMENTS | Global Ship vs. Perdoceo Education | Global Ship vs. Coor Service Management |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |