Correlation Between Harmonic and Impinj

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Can any of the company-specific risk be diversified away by investing in both Harmonic 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 Harmonic and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmonic and Impinj Inc, you can compare the effects of market volatilities on Harmonic 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 Harmonic with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmonic and Impinj.

Diversification Opportunities for Harmonic and Impinj

0.32
  Correlation Coefficient

Weak diversification

The 3 months correlation between Harmonic and Impinj is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Harmonic and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Harmonic 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 Harmonic 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 Harmonic i.e., Harmonic and Impinj go up and down completely randomly.

Pair Corralation between Harmonic and Impinj

Given the investment horizon of 90 days Harmonic is expected to generate 2.69 times less return on investment than Impinj. But when comparing it to its historical volatility, Harmonic is 1.41 times less risky than Impinj. It trades about 0.07 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  6,657  in Impinj Inc on December 29, 2023 and sell it today you would earn a total of  6,184  from holding Impinj Inc or generate 92.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Harmonic  vs.  Impinj Inc

 Performance 
       Timeline  
Harmonic 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Harmonic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Harmonic is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.
Impinj Inc 

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Impinj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Harmonic and Impinj Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Harmonic and Impinj

The main advantage of trading using opposite Harmonic and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmonic 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.
The idea behind Harmonic and Impinj Inc 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.
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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