Correlation Between Impinj and Unipol Gruppo
Can any of the company-specific risk be diversified away by investing in both Impinj and Unipol Gruppo 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 Unipol Gruppo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Unipol Gruppo Finanziario, you can compare the effects of market volatilities on Impinj and Unipol Gruppo 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 Unipol Gruppo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Unipol Gruppo.
Diversification Opportunities for Impinj and Unipol Gruppo
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Impinj and Unipol is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Unipol Gruppo Finanziario in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipol Gruppo Finanziario 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 Unipol Gruppo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipol Gruppo Finanziario has no effect on the direction of Impinj i.e., Impinj and Unipol Gruppo go up and down completely randomly.
Pair Corralation between Impinj and Unipol Gruppo
Assuming the 90 days trading horizon Impinj Inc is expected to generate 1.85 times more return on investment than Unipol Gruppo. However, Impinj is 1.85 times more volatile than Unipol Gruppo Finanziario. It trades about 0.07 of its potential returns per unit of risk. Unipol Gruppo Finanziario is currently generating about 0.09 per unit of risk. If you would invest 14,810 in Impinj Inc on September 3, 2024 and sell it today you would earn a total of 3,775 from holding Impinj Inc or generate 25.49% 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. Unipol Gruppo Finanziario
Performance |
| Timeline |
| Impinj Inc |
| Unipol Gruppo Finanziario |
Impinj and Unipol Gruppo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Unipol Gruppo
The main advantage of trading using opposite Impinj and Unipol Gruppo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Unipol Gruppo 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 Unipol Gruppo will offset losses from the drop in Unipol Gruppo's long position.| Impinj vs. 24SEVENOFFICE GROUP AB | Impinj vs. Natural Health Trends | Impinj vs. CITY OFFICE REIT | Impinj vs. G III Apparel Group |
| Unipol Gruppo vs. Scientific Games | Unipol Gruppo vs. International Game Technology | Unipol Gruppo vs. CI GAMES SA | Unipol Gruppo vs. Zijin Mining Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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