Correlation Between Impinj and Qualcomm Incorporated

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

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

Diversification Opportunities for Impinj and Qualcomm Incorporated

0.73

Correlation Coefficient

Impinj  Qualcomm Incorporated

Poor diversification

The 3 months correlation between Impinj and Qualcomm is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Qualcomm Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qualcomm Incorporated 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 Qualcomm Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qualcomm Incorporated has no effect on the direction of Impinj i.e., Impinj and Qualcomm Incorporated go up and down completely randomly.

Pair Corralation between Impinj and Qualcomm Incorporated

Allowing for the 90-day total investment horizon Impinj Inc is expected to generate 1.69 times more return on investment than Qualcomm Incorporated. However, Impinj is 1.69 times more volatile than Qualcomm Incorporated. It trades about 0.6 of its potential returns per unit of risk. Qualcomm Incorporated is currently generating about 0.17 per unit of risk. If you would invest  6,802  in Impinj Inc on February 13, 2025 and sell it today you would earn a total of  5,344  from holding Impinj Inc or generate 78.57% return on investment over 90 days.

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

Impinj Inc  vs.  Qualcomm Incorporated

Impinj Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Impinj Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady forward indicators, Impinj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Qualcomm Incorporated

Risk-Adjusted Performance

Very Weak

Over the last 90 days Qualcomm Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Impinj and Qualcomm Incorporated

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

The idea behind Impinj Inc and Qualcomm Incorporated 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.