Correlation Between Impinj and Bayer AG
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By analyzing existing cross correlation between Impinj Inc and Bayer AG NA, you can compare the effects of market volatilities on Impinj and Bayer AG 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 Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and Bayer AG.
Diversification Opportunities for Impinj and Bayer AG
Poor diversification
The 3 months correlation between Impinj and Bayer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Bayer AG NA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG NA 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 Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG NA has no effect on the direction of Impinj i.e., Impinj and Bayer AG go up and down completely randomly.
Pair Corralation between Impinj and Bayer AG
Assuming the 90 days horizon Impinj Inc is expected to under-perform the Bayer AG. In addition to that, Impinj is 1.83 times more volatile than Bayer AG NA. It trades about -0.46 of its total potential returns per unit of risk. Bayer AG NA is currently generating about -0.12 per unit of volatility. If you would invest 1,980 in Bayer AG NA on September 23, 2024 and sell it today you would lose (86.00) from holding Bayer AG NA or give up 4.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Impinj Inc vs. Bayer AG NA
Performance |
Timeline |
Impinj Inc |
Bayer AG NA |
Impinj and Bayer AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Impinj and Bayer AG
The main advantage of trading using opposite Impinj and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.Impinj vs. Amphenol | Impinj vs. Hon Hai Precision | Impinj vs. Samsung SDI Co | Impinj vs. Murata Manufacturing Co |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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