Correlation Between Amtech Systems and Impinj
Can any of the company-specific risk be diversified away by investing in both Amtech Systems 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 Amtech Systems and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtech Systems and Impinj Inc, you can compare the effects of market volatilities on Amtech Systems 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 Amtech Systems with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtech Systems and Impinj.
Diversification Opportunities for Amtech Systems and Impinj
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amtech and Impinj is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Amtech Systems and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Amtech Systems 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 Amtech Systems 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 Amtech Systems i.e., Amtech Systems and Impinj go up and down completely randomly.
Pair Corralation between Amtech Systems and Impinj
Given the investment horizon of 90 days Amtech Systems is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, Amtech Systems is 1.08 times less risky than Impinj. The stock trades about 0.0 of its potential returns per unit of risk. The Impinj Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,691 in Impinj Inc on August 25, 2024 and sell it today you would earn a total of 7,413 from holding Impinj Inc or generate 63.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtech Systems vs. Impinj Inc
Performance |
| Timeline |
| Amtech Systems |
| Impinj Inc |
Amtech Systems and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtech Systems and Impinj
The main advantage of trading using opposite Amtech Systems and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtech Systems 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 Amtech Systems 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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