Correlation Between PUBLIC STORAGE and Impinj
Can any of the company-specific risk be diversified away by investing in both PUBLIC STORAGE 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 PUBLIC STORAGE and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PUBLIC STORAGE PRFO and Impinj Inc, you can compare the effects of market volatilities on PUBLIC STORAGE 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 PUBLIC STORAGE with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of PUBLIC STORAGE and Impinj.
Diversification Opportunities for PUBLIC STORAGE and Impinj
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between PUBLIC and Impinj is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding PUBLIC STORAGE PRFO and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and PUBLIC STORAGE 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 PUBLIC STORAGE PRFO 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 PUBLIC STORAGE i.e., PUBLIC STORAGE and Impinj go up and down completely randomly.
Pair Corralation between PUBLIC STORAGE and Impinj
Assuming the 90 days trading horizon PUBLIC STORAGE is expected to generate 2.61 times less return on investment than Impinj. But when comparing it to its historical volatility, PUBLIC STORAGE PRFO is 3.42 times less risky than Impinj. It trades about 0.07 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 15,100 in Impinj Inc on August 25, 2024 and sell it today you would earn a total of 2,550 from holding Impinj Inc or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
PUBLIC STORAGE PRFO vs. Impinj Inc
Performance |
| Timeline |
| PUBLIC STORAGE PRFO |
| Impinj Inc |
PUBLIC STORAGE and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PUBLIC STORAGE and Impinj
The main advantage of trading using opposite PUBLIC STORAGE and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PUBLIC STORAGE 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.| PUBLIC STORAGE vs. Xtrackers ShortDAX | PUBLIC STORAGE vs. Lyxor 1 | PUBLIC STORAGE vs. Xtrackers LevDAX | PUBLIC STORAGE vs. Superior Plus Corp |
| Impinj vs. Hyrican Informationssysteme Aktiengesellschaft | Impinj vs. Fidelity National Information | Impinj vs. PUBLIC STORAGE PRFO | Impinj vs. Information Services International Dentsu |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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