Correlation Between Gladstone Investment and Impinj

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

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

Diversification Opportunities for Gladstone Investment and Impinj

-0.25

Correlation Coefficient

Gladstone Investment  Impinj

Very good diversification

The 3 months correlation between Gladstone and Impinj is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gladstone Investment and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Gladstone Investment 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 Gladstone Investment 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 Gladstone Investment i.e., Gladstone Investment and Impinj go up and down completely randomly.

Pair Corralation between Gladstone Investment and Impinj

Assuming the 90 days horizon Gladstone Investment is expected to generate 1.65 times less return on investment than Impinj. But when comparing it to its historical volatility, Gladstone Investment is 2.48 times less risky than Impinj. It trades about 0.05 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  11,190  in Impinj Inc on October 5, 2024 and sell it today you would earn a total of  2,970  from holding Impinj Inc or generate 26.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Gladstone Investment  vs.  Impinj Inc

Gladstone Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gladstone Investment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Gladstone Investment is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Impinj Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Impinj Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Gladstone Investment and Impinj

The main advantage of trading using opposite Gladstone Investment and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gladstone Investment 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 Gladstone Investment 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.