Correlation Between CosmoSteel Holdings and Impinj
Can any of the company-specific risk be diversified away by investing in both CosmoSteel Holdings 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 CosmoSteel Holdings and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CosmoSteel Holdings Limited and Impinj Inc, you can compare the effects of market volatilities on CosmoSteel Holdings 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 CosmoSteel Holdings with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of CosmoSteel Holdings and Impinj.
Diversification Opportunities for CosmoSteel Holdings and Impinj
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CosmoSteel and Impinj is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CosmoSteel Holdings Limited and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and CosmoSteel Holdings 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 CosmoSteel Holdings Limited 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 CosmoSteel Holdings i.e., CosmoSteel Holdings and Impinj go up and down completely randomly.
Pair Corralation between CosmoSteel Holdings and Impinj
Assuming the 90 days horizon CosmoSteel Holdings Limited is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, CosmoSteel Holdings Limited is 1.42 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 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,095 in Impinj Inc on September 4, 2024 and sell it today you would earn a total of 6,845 from holding Impinj Inc or generate 61.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CosmoSteel Holdings Limited vs. Impinj Inc
Performance |
| Timeline |
| CosmoSteel Holdings |
| Impinj Inc |
CosmoSteel Holdings and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CosmoSteel Holdings and Impinj
The main advantage of trading using opposite CosmoSteel Holdings and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CosmoSteel Holdings 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.| CosmoSteel Holdings vs. WATSCO INC B | CosmoSteel Holdings vs. Indutrade AB | CosmoSteel Holdings vs. Superior Plus Corp | CosmoSteel Holdings vs. NMI Holdings |
| Impinj vs. GALENA MINING LTD | Impinj vs. SERI INDUSTRIAL EO | Impinj vs. MCEWEN MINING INC | Impinj vs. ETFS Coffee ETC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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