Correlation Between NETGEAR and Impinj

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

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

Diversification Opportunities for NETGEAR and Impinj

-0.6

Correlation Coefficient

NETGEAR  Impinj

Excellent diversification

The 3 months correlation between NETGEAR and Impinj is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and Impinj go up and down completely randomly.

Pair Corralation between NETGEAR and Impinj

Given the investment horizon of 90 days NETGEAR is expected to under-perform the Impinj. But the stock apears to be less risky and, when comparing its historical volatility, NETGEAR is 1.77 times less risky than Impinj. The stock trades about -0.09 of its potential returns per unit of risk. The Impinj Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  11,195  in Impinj Inc on May 12, 2025 and sell it today you would earn a total of  4,178  from holding Impinj Inc or generate 37.32% return on investment over 90 days.

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

NETGEAR  vs.  Impinj Inc

NETGEAR

Risk-Adjusted Performance

Weakest

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Impinj Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 10 (%) 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.

Pair Trading with NETGEAR and Impinj

The main advantage of trading using opposite NETGEAR and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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 NETGEAR 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.