Correlation Between Impinj and Hugo Boss

Can any of the company-specific risk be diversified away by investing in both Impinj and Hugo Boss 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 Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Impinj Inc and Hugo Boss AG, you can compare the effects of market volatilities on Impinj and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Hugo Boss.

Diversification Opportunities for Impinj and Hugo Boss

-0.76

Correlation Coefficient

Impinj  Hugo Boss

Pay attention - limited upside

The 3 months correlation between Impinj and Hugo is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Impinj i.e., Impinj and Hugo Boss go up and down completely randomly.

Pair Corralation between Impinj and Hugo Boss

Assuming the 90 days horizon Impinj Inc is expected to generate 2.11 times more return on investment than Hugo Boss. However, Impinj is 2.11 times more volatile than Hugo Boss AG. It trades about 0.27 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.13 per unit of risk. If you would invest  11,325  in Impinj Inc on February 8, 2024 and sell it today you would earn a total of  3,735  from holding Impinj Inc or generate 32.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Impinj Inc  vs.  Hugo Boss AG

Impinj Inc

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Impinj reported solid returns over the last few months and may actually be approaching a breakup point.

Hugo Boss AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hugo Boss AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Impinj and Hugo Boss

The main advantage of trading using opposite Impinj and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.

The idea behind Impinj Inc and Hugo Boss AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stocks Directory module to find actively traded stocks across global markets.