Correlation Between Ramsay Health and Impinj

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

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

Diversification Opportunities for Ramsay Health and Impinj

0.07

Correlation Coefficient

Ramsay Health  Impinj

Significant diversification

The 3 months correlation between Ramsay and Impinj is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Ramsay Health 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 Ramsay Health Care 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 Ramsay Health i.e., Ramsay Health and Impinj go up and down completely randomly.

Pair Corralation between Ramsay Health and Impinj

Assuming the 90 days horizon Ramsay Health Care is expected to generate 0.4 times more return on investment than Impinj. However, Ramsay Health Care is 2.5 times less risky than Impinj. It trades about 0.04 of its potential returns per unit of risk. Impinj Inc is currently generating about -0.14 per unit of risk. If you would invest  1,977  in Ramsay Health Care on December 29, 2024 and sell it today you would earn a total of  63.00  from holding Ramsay Health Care or generate 3.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Ramsay Health Care  vs.  Impinj Inc

Ramsay Health Care

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ramsay Health Care are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Ramsay Health is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

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. 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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Ramsay Health and Impinj

The main advantage of trading using opposite Ramsay Health and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health 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 Ramsay Health Care 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..