Correlation Between Impinj and First Solar
Can any of the company-specific risk be diversified away by investing in both Impinj and First Solar 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 First Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impinj Inc and First Solar, you can compare the effects of market volatilities on Impinj and First Solar 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 First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impinj and First Solar.
Diversification Opportunities for Impinj and First Solar
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Impinj and First is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar 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 First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of Impinj i.e., Impinj and First Solar go up and down completely randomly.
Pair Corralation between Impinj and First Solar
Allowing for the 90-day total investment horizon Impinj is expected to generate 1.02 times less return on investment than First Solar. In addition to that, Impinj is 1.24 times more volatile than First Solar. It trades about 0.04 of its total potential returns per unit of risk. First Solar is currently generating about 0.05 per unit of volatility. If you would invest 22,591 in First Solar on October 10, 2025 and sell it today you would earn a total of 1,520 from holding First Solar or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impinj Inc vs. First Solar
Performance |
| Timeline |
| Impinj Inc |
| First Solar |
Impinj and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impinj and First Solar
The main advantage of trading using opposite Impinj and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impinj position performs unexpectedly, First Solar 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 First Solar will offset losses from the drop in First Solar's long position.The idea behind Impinj Inc and First Solar 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.| First Solar vs. Cenovus Energy | First Solar vs. Woodside Energy Group | First Solar vs. Nextracker Class A | First Solar vs. Targa Resources |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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