Correlation Between Chuangs China and Impinj
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Impinj Inc, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Impinj.
Diversification Opportunities for Chuangs China and Impinj
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chuangs and Impinj is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and Impinj go up and down completely randomly.
Pair Corralation between Chuangs China and Impinj
If you would invest 17,375 in Impinj Inc on September 2, 2024 and sell it today you would earn a total of 565.00 from holding Impinj Inc or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chuangs China Investments vs. Impinj Inc
Performance |
| Timeline |
| Chuangs China Investments |
| Impinj Inc |
Chuangs China and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chuangs China and Impinj
The main advantage of trading using opposite Chuangs China and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.| Chuangs China vs. Corporate Office Properties | Chuangs China vs. 24SEVENOFFICE GROUP AB | Chuangs China vs. MTI WIRELESS EDGE | Chuangs China vs. Tower One Wireless |
| Impinj vs. Scientific Games | Impinj vs. Media and Games | Impinj vs. TITANIUM TRANSPORTGROUP | Impinj vs. Games Workshop Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |