Correlation Between Impinj and Microvision

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

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

Diversification Opportunities for Impinj and Microvision

0.16

Correlation Coefficient

Impinj  Microvision

Average diversification

The 3 months correlation between Impinj and Microvision is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Microvision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microvision 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 Microvision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microvision has no effect on the direction of Impinj i.e., Impinj and Microvision go up and down completely randomly.

Pair Corralation between Impinj and Microvision

Allowing for the 90-day total investment horizon Impinj Inc is expected to generate 0.52 times more return on investment than Microvision. However, Impinj Inc is 1.91 times less risky than Microvision. It trades about 0.13 of its potential returns per unit of risk. Microvision is currently generating about 0.03 per unit of risk. If you would invest  9,880  in Impinj Inc on May 2, 2025 and sell it today you would earn a total of  2,341  from holding Impinj Inc or generate 23.69% return on investment over 90 days.

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

Impinj Inc  vs.  Microvision

Impinj Inc

Risk-Adjusted Performance

Good

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.

Microvision

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Microvision are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Microvision may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Impinj and Microvision

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

The idea behind Impinj Inc and Microvision 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.