Correlation Between Impinj and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Impinj and Fiskars Oyj 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 Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Fiskars Oyj Abp, you can compare the effects of market volatilities on Impinj and Fiskars Oyj 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 Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Fiskars Oyj.
Diversification Opportunities for Impinj and Fiskars Oyj
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Impinj and Fiskars is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp 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 Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Impinj i.e., Impinj and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Impinj and Fiskars Oyj
Assuming the 90 days trading horizon Impinj Inc is expected to generate 2.18 times more return on investment than Fiskars Oyj. However, Impinj is 2.18 times more volatile than Fiskars Oyj Abp. It trades about 0.06 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about -0.04 per unit of risk. If you would invest 14,950 in Impinj Inc on September 1, 2024 and sell it today you would earn a total of 2,865 from holding Impinj Inc or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Impinj Inc vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Impinj Inc |
| Fiskars Oyj Abp |
Impinj and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Fiskars Oyj
The main advantage of trading using opposite Impinj and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Impinj vs. British American Tobacco | Impinj vs. GUARDANT HEALTH CL | Impinj vs. United Insurance Holdings | Impinj vs. SBI Insurance Group |
| Fiskars Oyj vs. Wyndham Hotels Resorts | Fiskars Oyj vs. Verizon Communications | Fiskars Oyj vs. MELIA HOTELS | Fiskars Oyj vs. INTERCONT HOTELS |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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