Correlation Between SERI INDUSTRIAL and Impinj
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL 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 SERI INDUSTRIAL and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and Impinj Inc, you can compare the effects of market volatilities on SERI INDUSTRIAL 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 SERI INDUSTRIAL with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and Impinj.
Diversification Opportunities for SERI INDUSTRIAL and Impinj
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SERI and Impinj is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO 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 SERI INDUSTRIAL i.e., SERI INDUSTRIAL and Impinj go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and Impinj
Assuming the 90 days trading horizon SERI INDUSTRIAL is expected to generate 1.49 times less return on investment than Impinj. In addition to that, SERI INDUSTRIAL is 1.72 times more volatile than Impinj Inc. It trades about 0.02 of its total potential returns per unit of risk. Impinj Inc is currently generating about 0.05 per unit of volatility. If you would invest 17,580 in Impinj Inc on September 4, 2024 and sell it today you would earn a total of 360.00 from holding Impinj Inc or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. Impinj Inc
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| Impinj Inc |
SERI INDUSTRIAL and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and Impinj
The main advantage of trading using opposite SERI INDUSTRIAL and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL 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.| SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc | SERI INDUSTRIAL vs. Apple Inc |
| 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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