Correlation Between Impinj and EPAM Systems

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

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

Diversification Opportunities for Impinj and EPAM Systems

-0.38

Correlation Coefficient

Impinj  EPAM Systems

Very good diversification

The 3 months correlation between Impinj and EPAM is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and EPAM Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPAM Systems 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 EPAM Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPAM Systems has no effect on the direction of Impinj i.e., Impinj and EPAM Systems go up and down completely randomly.

Pair Corralation between Impinj and EPAM Systems

Allowing for the 90-day total investment horizon Impinj Inc is expected to generate 1.95 times more return on investment than EPAM Systems. However, Impinj is 1.95 times more volatile than EPAM Systems. It trades about 0.19 of its potential returns per unit of risk. EPAM Systems is currently generating about -0.1 per unit of risk. If you would invest  11,270  in Impinj Inc on July 14, 2025 and sell it today you would earn a total of  7,526  from holding Impinj Inc or generate 66.78% return on investment over 90 days.

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

Impinj Inc  vs.  EPAM Systems

Impinj Inc

Risk-Adjusted Performance

Good

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.

EPAM Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days EPAM Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Impinj and EPAM Systems

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

The idea behind Impinj Inc and EPAM Systems 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.