Correlation Between Ramsay Health and Impinj
Can any of the company-specific risk be diversified away by investing in both Ramsay Health 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 Ramsay Health and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and Impinj Inc, you can compare the effects of market volatilities on Ramsay Health 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 Ramsay Health with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and Impinj.
Diversification Opportunities for Ramsay Health and Impinj
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ramsay and Impinj is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Ramsay Health 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 Ramsay Health Care 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 Ramsay Health i.e., Ramsay Health and Impinj go up and down completely randomly.
Pair Corralation between Ramsay Health and Impinj
Assuming the 90 days horizon Ramsay Health Care is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, Ramsay Health Care is 2.31 times less risky than Impinj. The stock trades about -0.07 of its potential returns per unit of risk. The Impinj Inc is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 12,055 in Impinj Inc on December 4, 2024 and sell it today you would lose (3,335) from holding Impinj Inc or give up 27.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ramsay Health Care vs. Impinj Inc
Performance |
| Timeline |
| Ramsay Health Care |
| Impinj Inc |
Ramsay Health and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and Impinj
The main advantage of trading using opposite Ramsay Health and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health 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.| Ramsay Health vs. United Airlines Holdings | Ramsay Health vs. Gol Intelligent Airlines | Ramsay Health vs. BORR DRILLING NEW | Ramsay Health vs. China Resources Beer |
| Impinj vs. UNITED RENTALS | Impinj vs. Vienna Insurance Group | Impinj vs. FUYO GENERAL LEASE | Impinj vs. Sabre Insurance 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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