Correlation Between COMBA TELECOM and Impinj
Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM 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 COMBA TELECOM and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMBA TELECOM SYST and Impinj Inc, you can compare the effects of market volatilities on COMBA TELECOM 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 COMBA TELECOM with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and Impinj.
Diversification Opportunities for COMBA TELECOM and Impinj
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between COMBA and Impinj is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and COMBA TELECOM 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 COMBA TELECOM SYST 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 COMBA TELECOM i.e., COMBA TELECOM and Impinj go up and down completely randomly.
Pair Corralation between COMBA TELECOM and Impinj
Assuming the 90 days trading horizon COMBA TELECOM SYST is expected to generate 0.43 times more return on investment than Impinj. However, COMBA TELECOM SYST is 2.34 times less risky than Impinj. It trades about -0.21 of its potential returns per unit of risk. Impinj Inc is currently generating about -0.19 per unit of risk. If you would invest 14.00 in COMBA TELECOM SYST on November 4, 2024 and sell it today you would lose (1.00) from holding COMBA TELECOM SYST or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMBA TELECOM SYST vs. Impinj Inc
Performance |
| Timeline |
| COMBA TELECOM SYST |
| Impinj Inc |
COMBA TELECOM and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMBA TELECOM and Impinj
The main advantage of trading using opposite COMBA TELECOM and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM 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.| COMBA TELECOM vs. Inspire Medical Systems | COMBA TELECOM vs. Fortescue Metals Group | COMBA TELECOM vs. Medical Properties Trust | COMBA TELECOM vs. Merit Medical Systems |
| Impinj vs. MidCap Financial Investment | Impinj vs. Tyson Foods | Impinj vs. CDL INVESTMENT | Impinj vs. SLR Investment Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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