Correlation Between Impinj and Minim

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

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

Diversification Opportunities for Impinj and Minim

0.38

Correlation Coefficient

Impinj  Minim

Weak diversification

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

Pair Corralation between Impinj and Minim

Allowing for the 90-day total investment horizon Impinj is expected to generate 9.1 times less return on investment than Minim. But when comparing it to its historical volatility, Impinj Inc is 7.98 times less risky than Minim. It trades about 0.16 of its potential returns per unit of risk. Minim Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  90.00  in Minim Inc on April 25, 2025 and sell it today you would earn a total of  241.00  from holding Minim Inc or generate 267.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	85.25%
Values	Daily Returns

Impinj Inc  vs.  Minim Inc

Impinj Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 12 (%) 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.

Minim Inc

Risk-Adjusted Performance

Good

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very uncertain basic indicators, Minim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Impinj and Minim

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

The idea behind Impinj Inc and Minim 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.