Correlation Between Impinj and Isetan Mitsukoshi

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

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

Diversification Opportunities for Impinj and Isetan Mitsukoshi

-0.53

Correlation Coefficient

Impinj  Isetan Mitsukoshi

Excellent diversification

The 3 months correlation between Impinj and Isetan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Isetan Mitsukoshi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Isetan Mitsukoshi 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 Isetan Mitsukoshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Isetan Mitsukoshi has no effect on the direction of Impinj i.e., Impinj and Isetan Mitsukoshi go up and down completely randomly.

Pair Corralation between Impinj and Isetan Mitsukoshi

Assuming the 90 days horizon Impinj is expected to generate 1.1 times less return on investment than Isetan Mitsukoshi. In addition to that, Impinj is 1.4 times more volatile than Isetan Mitsukoshi Holdings. It trades about 0.03 of its total potential returns per unit of risk. Isetan Mitsukoshi Holdings is currently generating about 0.05 per unit of volatility. If you would invest  975.00  in Isetan Mitsukoshi Holdings on October 11, 2024 and sell it today you would earn a total of  595.00  from holding Isetan Mitsukoshi Holdings or generate 61.03% return on investment over 90 days.

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

Impinj Inc  vs.  Isetan Mitsukoshi Holdings

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. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Isetan Mitsukoshi

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Isetan Mitsukoshi Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Isetan Mitsukoshi reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Impinj and Isetan Mitsukoshi

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

The idea behind Impinj Inc and Isetan Mitsukoshi Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.