Correlation Between Celestica and Impinj
Can any of the company-specific risk be diversified away by investing in both Celestica 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 Celestica and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celestica and Impinj Inc, you can compare the effects of market volatilities on Celestica 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 Celestica with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celestica and Impinj.
Diversification Opportunities for Celestica and Impinj
Very poor diversification
The 3 months correlation between Celestica and Impinj is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Celestica and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Celestica 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 Celestica 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 Celestica i.e., Celestica and Impinj go up and down completely randomly.
Pair Corralation between Celestica and Impinj
Considering the 90-day investment horizon Celestica is expected to generate 1.29 times more return on investment than Impinj. However, Celestica is 1.29 times more volatile than Impinj Inc. It trades about 0.0 of its potential returns per unit of risk. Impinj Inc is currently generating about -0.02 per unit of risk. If you would invest 4,405 in Celestica on January 20, 2024 and sell it today you would lose (24.00) from holding Celestica or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celestica vs. Impinj Inc
Performance |
| Timeline |
| Celestica |
| Impinj Inc |
Celestica and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celestica and Impinj
The main advantage of trading using opposite Celestica and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celestica 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.| Celestica vs. Maximus | Celestica vs. Network 1 Technologies | Celestica vs. First Advantage Corp | Celestica vs. BrightView Holdings |
| Impinj vs. Lumentum Holdings | Impinj vs. Hewlett Packard Enterprise | Impinj vs. Ciena Corp | Impinj vs. Minim 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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