Correlation Between ASML Holding and Impinj

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Can any of the company-specific risk be diversified away by investing in both ASML Holding 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 ASML Holding and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASML Holding NV and Impinj Inc, you can compare the effects of market volatilities on ASML Holding 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 ASML Holding with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASML Holding and Impinj.

Diversification Opportunities for ASML Holding and Impinj

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between ASML and Impinj is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding ASML Holding NV and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and ASML Holding 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 ASML Holding NV 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 ASML Holding i.e., ASML Holding and Impinj go up and down completely randomly.

Pair Corralation between ASML Holding and Impinj

Given the investment horizon of 90 days ASML Holding NV is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, ASML Holding NV is 1.11 times less risky than Impinj. The stock trades about -0.25 of its potential returns per unit of risk. The Impinj Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  11,107  in Impinj Inc on April 29, 2025 and sell it today you would earn a total of  1,380  from holding Impinj Inc or generate 12.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

ASML Holding NV  vs.  Impinj Inc

 Performance 
       Timeline  
ASML Holding NV 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ASML Holding NV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain primary indicators, ASML Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.
Impinj Inc 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating forward indicators, Impinj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ASML Holding and Impinj Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ASML Holding and Impinj

The main advantage of trading using opposite ASML Holding and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASML Holding 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 ASML Holding NV 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.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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