Correlation Between Impinj and Micron Technology
Can any of the company-specific risk be diversified away by investing in both Impinj and Micron Technology 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 Impinj and Micron Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and Micron Technology, you can compare the effects of market volatilities on Impinj and Micron Technology 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 Impinj with a short position of Micron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Micron Technology.
Diversification Opportunities for Impinj and Micron Technology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Impinj and Micron is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Micron Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micron Technology and Impinj 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 Impinj Inc are associated (or correlated) with Micron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micron Technology has no effect on the direction of Impinj i.e., Impinj and Micron Technology go up and down completely randomly.
Pair Corralation between Impinj and Micron Technology
Allowing for the 90-day total investment horizon Impinj Inc is expected to under-perform the Micron Technology. But the stock apears to be less risky and, when comparing its historical volatility, Impinj Inc is 1.59 times less risky than Micron Technology. The stock trades about -0.4 of its potential returns per unit of risk. The Micron Technology is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 10,448 in Micron Technology on September 24, 2024 and sell it today you would lose (1,436) from holding Micron Technology or give up 13.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. Micron Technology
Performance |
| Timeline |
| Impinj Inc |
| Micron Technology |
Impinj and Micron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and Micron Technology
The main advantage of trading using opposite Impinj and Micron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Micron Technology 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 Micron Technology will offset losses from the drop in Micron Technology's long position.| Impinj vs. Lumentum Holdings | Impinj vs. Hewlett Packard Enterprise | Impinj vs. Ciena Corp | Impinj vs. Motorola Solutions |
| Micron Technology vs. Diodes Incorporated | Micron Technology vs. Daqo New Energy | Micron Technology vs. Nano Labs | Micron Technology vs. Impinj Inc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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