Correlation Between Asana and Impinj
Can any of the company-specific risk be diversified away by investing in both Asana and Impinj 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 Asana and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asana Inc and Impinj Inc, you can compare the effects of market volatilities on Asana and Impinj 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 Asana with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asana and Impinj.
Diversification Opportunities for Asana and Impinj
Very good diversification
The 3 months correlation between Asana and Impinj is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Asana Inc and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Asana 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 Asana Inc are associated (or correlated) with Impinj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impinj Inc has no effect on the direction of Asana i.e., Asana and Impinj go up and down completely randomly.
Pair Corralation between Asana and Impinj
Given the investment horizon of 90 days Asana Inc is expected to generate 0.82 times more return on investment than Impinj. However, Asana Inc is 1.21 times less risky than Impinj. It trades about 0.26 of its potential returns per unit of risk. Impinj Inc is currently generating about -0.06 per unit of risk. If you would invest 1,189 in Asana Inc on August 25, 2024 and sell it today you would earn a total of 385.00 from holding Asana Inc or generate 32.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asana Inc vs. Impinj Inc
Performance |
| Timeline |
| Asana Inc |
| Impinj Inc |
Asana and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asana and Impinj
The main advantage of trading using opposite Asana and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asana position performs unexpectedly, Impinj 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 Impinj will offset losses from the drop in Impinj's long position.The idea behind Asana Inc and Impinj Inc 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.| Impinj vs. Lumentum Holdings | Impinj vs. Hewlett Packard Enterprise | Impinj vs. Ciena Corp | Impinj vs. Motorola Solutions |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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