Correlation Between Credo Technology and Impinj
Can any of the company-specific risk be diversified away by investing in both Credo Technology 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 Credo Technology and Impinj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Credo Technology Group and Impinj Inc, you can compare the effects of market volatilities on Credo Technology 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 Credo Technology with a short position of Impinj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credo Technology and Impinj.
Diversification Opportunities for Credo Technology and Impinj
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Credo and Impinj is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Credo Technology Group and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Credo Technology 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 Credo Technology Group 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 Credo Technology i.e., Credo Technology and Impinj go up and down completely randomly.
Pair Corralation between Credo Technology and Impinj
Given the investment horizon of 90 days Credo Technology Group is expected to generate 1.44 times more return on investment than Impinj. However, Credo Technology is 1.44 times more volatile than Impinj Inc. It trades about 0.11 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.03 per unit of risk. If you would invest 3,491 in Credo Technology Group on May 27, 2025 and sell it today you would earn a total of 7,913 from holding Credo Technology Group or generate 226.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credo Technology Group vs. Impinj Inc
Performance |
| Timeline |
| Credo Technology |
| Impinj Inc |
Credo Technology and Impinj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credo Technology and Impinj
The main advantage of trading using opposite Credo Technology and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credo Technology 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.| Credo Technology vs. Allegro Microsystems | Credo Technology vs. Ciena Corp | Credo Technology vs. Hewlett Packard Enterprise | Credo Technology vs. Lumentum Holdings |
| Impinj vs. Credo Technology Group | Impinj vs. Zebra Technologies | Impinj vs. Ubiquiti Networks | Impinj vs. Ciena Corp |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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