Correlation Between Impinj and United Microelectronics
Can any of the company-specific risk be diversified away by investing in both Impinj and United Microelectronics 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 United Microelectronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and United Microelectronics, you can compare the effects of market volatilities on Impinj and United Microelectronics 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 United Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and United Microelectronics.
Diversification Opportunities for Impinj and United Microelectronics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Impinj and United is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics 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 United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of Impinj i.e., Impinj and United Microelectronics go up and down completely randomly.
Pair Corralation between Impinj and United Microelectronics
Allowing for the 90-day total investment horizon Impinj Inc is expected to generate 2.1 times more return on investment than United Microelectronics. However, Impinj is 2.1 times more volatile than United Microelectronics. It trades about 0.04 of its potential returns per unit of risk. United Microelectronics is currently generating about 0.02 per unit of risk. If you would invest 11,026 in Impinj Inc on September 24, 2024 and sell it today you would earn a total of 3,588 from holding Impinj Inc or generate 32.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. United Microelectronics
Performance |
| Timeline |
| Impinj Inc |
| United Microelectronics |
Impinj and United Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and United Microelectronics
The main advantage of trading using opposite Impinj and United Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, United Microelectronics 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 United Microelectronics will offset losses from the drop in United Microelectronics' long position.| Impinj vs. Lumentum Holdings | Impinj vs. Hewlett Packard Enterprise | Impinj vs. Ciena Corp | Impinj vs. Motorola Solutions |
| United Microelectronics vs. Diodes Incorporated | United Microelectronics vs. Daqo New Energy | United Microelectronics vs. Nano Labs | United Microelectronics 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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