Correlation Between Allegro Microsystems and Impinj

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

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

Diversification Opportunities for Allegro Microsystems and Impinj

0.68

Correlation Coefficient

Allegro Microsystems  Impinj

Poor diversification

The 3 months correlation between Allegro and Impinj is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Allegro Microsystems and Impinj Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impinj Inc and Allegro Microsystems 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 Allegro Microsystems 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 Allegro Microsystems i.e., Allegro Microsystems and Impinj go up and down completely randomly.

Pair Corralation between Allegro Microsystems and Impinj

Given the investment horizon of 90 days Allegro Microsystems is expected to generate 1.12 times more return on investment than Impinj. However, Allegro Microsystems is 1.12 times more volatile than Impinj Inc. It trades about 0.15 of its potential returns per unit of risk. Impinj Inc is currently generating about 0.05 per unit of risk. If you would invest  2,471  in Allegro Microsystems on September 15, 2025 and sell it today you would earn a total of  240.00  from holding Allegro Microsystems or generate 9.71% return on investment over 90 days.

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

Allegro Microsystems  vs.  Impinj Inc

Allegro Microsystems

Risk-Adjusted Performance

Weakest

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

Impinj Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Impinj Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Allegro Microsystems and Impinj

The main advantage of trading using opposite Allegro Microsystems and Impinj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegro Microsystems 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.

The idea behind Allegro Microsystems and Impinj 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.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.