Correlation Between FUYO GENERAL and Impinj

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

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

Diversification Opportunities for FUYO GENERAL and Impinj

-0.5

Correlation Coefficient

FUYO GENERAL  Impinj

Very good diversification

The 3 months correlation between FUYO and Impinj is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Impinj go up and down completely randomly.

Pair Corralation between FUYO GENERAL and Impinj

Assuming the 90 days horizon FUYO GENERAL LEASE is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, FUYO GENERAL LEASE is 2.26 times less risky than Impinj. The stock trades about -0.02 of its potential returns per unit of risk. The Impinj Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  7,466  in Impinj Inc on October 9, 2024 and sell it today you would earn a total of  7,219  from holding Impinj Inc or generate 96.69% return on investment over 90 days.

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

FUYO GENERAL LEASE  vs.  Impinj Inc

FUYO GENERAL LEASE

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FUYO GENERAL LEASE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FUYO GENERAL may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 uncertain 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.

Pair Trading with FUYO GENERAL and Impinj

The main advantage of trading using opposite FUYO GENERAL and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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 FUYO GENERAL LEASE 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.