Correlation Between Impinj and CSSC Offshore

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

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

Diversification Opportunities for Impinj and CSSC Offshore

0.6

Correlation Coefficient

Impinj  CSSC Offshore

Poor diversification

The 3 months correlation between Impinj and CSSC is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of Impinj i.e., Impinj and CSSC Offshore go up and down completely randomly.

Pair Corralation between Impinj and CSSC Offshore

Assuming the 90 days horizon Impinj Inc is expected to under-perform the CSSC Offshore. In addition to that, Impinj is 4.06 times more volatile than CSSC Offshore Marine. It trades about -0.21 of its total potential returns per unit of risk. CSSC Offshore Marine is currently generating about -0.22 per unit of volatility. If you would invest  137.00  in CSSC Offshore Marine on December 29, 2024 and sell it today you would lose (15.00) from holding CSSC Offshore Marine or give up 10.95% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Impinj Inc  vs.  CSSC Offshore Marine

Impinj Inc

Risk-Adjusted Performance

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 April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CSSC Offshore Marine

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSSC Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Impinj and CSSC Offshore

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

The idea behind Impinj Inc and CSSC Offshore Marine 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.