Correlation Between Impinj and Yue Da
Can any of the company-specific risk be diversified away by investing in both Impinj and Yue Da 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 Yue Da into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Yue Da International, you can compare the effects of market volatilities on Impinj and Yue Da 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 Yue Da. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Yue Da.
Diversification Opportunities for Impinj and Yue Da
Very good diversification
The 3 months correlation between Impinj and Yue is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Yue Da International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yue Da International 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 Yue Da. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yue Da International has no effect on the direction of Impinj i.e., Impinj and Yue Da go up and down completely randomly.
Pair Corralation between Impinj and Yue Da
Assuming the 90 days trading horizon Impinj is expected to generate 45.35 times less return on investment than Yue Da. But when comparing it to its historical volatility, Impinj Inc is 14.86 times less risky than Yue Da. It trades about 0.04 of its potential returns per unit of risk. Yue Da International is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.19 in Yue Da International on August 24, 2024 and sell it today you would earn a total of 1.36 from holding Yue Da International or generate 715.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. Yue Da International
Performance |
| Timeline |
| Impinj Inc |
| Yue Da International |
Impinj and Yue Da Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Yue Da
The main advantage of trading using opposite Impinj and Yue Da positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Yue Da 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 Yue Da will offset losses from the drop in Yue Da's long position.| Impinj vs. ANGLER GAMING PLC | Impinj vs. Molson Coors Beverage | Impinj vs. Thai Beverage Public | Impinj vs. Fevertree Drinks PLC |
| Yue Da vs. Genco Shipping Trading | Yue Da vs. REINET INVESTMENTS SCA | Yue Da vs. Ubisoft Entertainment SA | Yue Da vs. XLMedia PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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