Correlation Between Sunny Optical and Impinj
Can any of the company-specific risk be diversified away by investing in both Sunny Optical 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 Sunny Optical and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Optical Technology and Impinj Inc, you can compare the effects of market volatilities on Sunny Optical 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 Sunny Optical with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Impinj.
Diversification Opportunities for Sunny Optical and Impinj
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunny and Impinj is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Sunny Optical 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 Sunny Optical Technology 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 Sunny Optical i.e., Sunny Optical and Impinj go up and down completely randomly.
Pair Corralation between Sunny Optical and Impinj
Assuming the 90 days horizon Sunny Optical is expected to generate 10.89 times less return on investment than Impinj. In addition to that, Sunny Optical is 1.16 times more volatile than Impinj Inc. It trades about 0.01 of its total potential returns per unit of risk. Impinj Inc is currently generating about 0.13 per unit of volatility. If you would invest 6,302 in Impinj Inc on September 1, 2024 and sell it today you would earn a total of 11,513 from holding Impinj Inc or generate 182.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Impinj Inc
Performance |
| Timeline |
| Sunny Optical Technology |
| Impinj Inc |
Sunny Optical and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Impinj
The main advantage of trading using opposite Sunny Optical and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical 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.| Sunny Optical vs. Altair Engineering | Sunny Optical vs. MGIC INVESTMENT | Sunny Optical vs. PennyMac Mortgage Investment | Sunny Optical vs. REGAL ASIAN INVESTMENTS |
| Impinj vs. British American Tobacco | Impinj vs. GUARDANT HEALTH CL | Impinj vs. United Insurance Holdings | Impinj vs. SBI 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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