Correlation Between Impinj and PLAYTECH
Can any of the company-specific risk be diversified away by investing in both Impinj and PLAYTECH 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 PLAYTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and PLAYTECH, you can compare the effects of market volatilities on Impinj and PLAYTECH 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 PLAYTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and PLAYTECH.
Diversification Opportunities for Impinj and PLAYTECH
Poor diversification
The 3 months correlation between Impinj and PLAYTECH is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and PLAYTECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYTECH 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 PLAYTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYTECH has no effect on the direction of Impinj i.e., Impinj and PLAYTECH go up and down completely randomly.
Pair Corralation between Impinj and PLAYTECH
Assuming the 90 days trading horizon Impinj Inc is expected to under-perform the PLAYTECH. In addition to that, Impinj is 3.44 times more volatile than PLAYTECH. It trades about -0.03 of its total potential returns per unit of risk. PLAYTECH is currently generating about 0.05 per unit of volatility. If you would invest 871.00 in PLAYTECH on August 31, 2024 and sell it today you would earn a total of 7.00 from holding PLAYTECH or generate 0.8% 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. PLAYTECH
Performance |
| Timeline |
| Impinj Inc |
| PLAYTECH |
Impinj and PLAYTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and PLAYTECH
The main advantage of trading using opposite Impinj and PLAYTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, PLAYTECH 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 PLAYTECH will offset losses from the drop in PLAYTECH's long position.| Impinj vs. Jacquet Metal Service | Impinj vs. LION ONE METALS | Impinj vs. FORWARD AIR P | Impinj vs. Norwegian Air Shuttle |
| PLAYTECH vs. American Eagle Outfitters | PLAYTECH vs. GRIFFIN MINING LTD | PLAYTECH vs. MCEWEN MINING INC | PLAYTECH vs. FEMALE HEALTH |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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