Correlation Between Moving IMage and Impinj

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

By analyzing existing cross correlation between Moving iMage Technologies and Impinj Inc, you can compare the effects of market volatilities on Moving IMage 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 Moving IMage with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moving IMage and Impinj.

Diversification Opportunities for Moving IMage and Impinj

-0.83

Correlation Coefficient

Moving IMage  Impinj

Pay attention - limited upside

The 3 months correlation between Moving and Impinj is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Moving iMage Technologies and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Moving IMage 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 Moving iMage Technologies 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 Moving IMage i.e., Moving IMage and Impinj go up and down completely randomly.

Pair Corralation between Moving IMage and Impinj

Given the investment horizon of 90 days Moving iMage Technologies is expected to generate 2.9 times more return on investment than Impinj. However, Moving IMage is 2.9 times more volatile than Impinj Inc. It trades about 0.1 of its potential returns per unit of risk. Impinj Inc is currently generating about -0.11 per unit of risk. If you would invest  50.00  in Moving iMage Technologies on January 24, 2024 and sell it today you would earn a total of  5.00  from holding Moving iMage Technologies or generate 10.0% return on investment over 90 days.

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

Moving iMage Technologies  vs.  Impinj Inc

Moving iMage Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moving iMage Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in May 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Impinj Inc

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, Impinj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moving IMage and Impinj

The main advantage of trading using opposite Moving IMage and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moving IMage 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 Moving iMage Technologies 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.