Correlation Between Impinj and KKR Co
Can any of the company-specific risk be diversified away by investing in both Impinj and KKR Co 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 KKR Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and KKR Co LP, you can compare the effects of market volatilities on Impinj and KKR Co 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 KKR Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and KKR Co.
Diversification Opportunities for Impinj and KKR Co
Very good diversification
The 3 months correlation between Impinj and KKR is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and KKR Co LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KKR Co LP 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 KKR Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KKR Co LP has no effect on the direction of Impinj i.e., Impinj and KKR Co go up and down completely randomly.
Pair Corralation between Impinj and KKR Co
Assuming the 90 days trading horizon Impinj Inc is expected to under-perform the KKR Co. In addition to that, Impinj is 1.77 times more volatile than KKR Co LP. It trades about -0.15 of its total potential returns per unit of risk. KKR Co LP is currently generating about 0.25 per unit of volatility. If you would invest 14,588 in KKR Co LP on November 2, 2024 and sell it today you would earn a total of 1,522 from holding KKR Co LP or generate 10.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. KKR Co LP
Performance |
| Timeline |
| Impinj Inc |
| KKR Co LP |
Impinj and KKR Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and KKR Co
The main advantage of trading using opposite Impinj and KKR Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, KKR Co 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 KKR Co will offset losses from the drop in KKR Co's long position.The idea behind Impinj Inc and KKR Co LP 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.| KKR Co vs. Commercial Vehicle Group | KKR Co vs. GRUPO CARSO A1 | KKR Co vs. Western Copper and | KKR Co vs. Motorcar Parts of |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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