Correlation Between Impinj and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Impinj and Zijin Mining 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 Zijin Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Zijin Mining Group, you can compare the effects of market volatilities on Impinj and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Zijin Mining.
Diversification Opportunities for Impinj and Zijin Mining
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and Zijin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Impinj i.e., Impinj and Zijin Mining go up and down completely randomly.
Pair Corralation between Impinj and Zijin Mining
Assuming the 90 days trading horizon Impinj Inc is expected to generate 1.12 times more return on investment than Zijin Mining. However, Impinj is 1.12 times more volatile than Zijin Mining Group. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 per unit of risk. If you would invest 9,572 in Impinj Inc on August 31, 2024 and sell it today you would earn a total of 8,168 from holding Impinj Inc or generate 85.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Impinj Inc vs. Zijin Mining Group
Performance |
| Timeline |
| Impinj Inc |
| Zijin Mining Group |
Impinj and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Zijin Mining
The main advantage of trading using opposite Impinj and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Impinj vs. Jacquet Metal Service | Impinj vs. LION ONE METALS | Impinj vs. FORWARD AIR P | Impinj vs. Norwegian Air Shuttle |
| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Rio Tinto Group | Zijin Mining vs. Vale SA |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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