Correlation Between Impinj and Choice Hotels

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

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

Diversification Opportunities for Impinj and Choice Hotels

0.32

Correlation Coefficient

Impinj  Choice Hotels

Weak diversification

The 3 months correlation between Impinj and Choice is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Impinj Inc and Choice Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choice Hotels Intern 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 Choice Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choice Hotels Intern has no effect on the direction of Impinj i.e., Impinj and Choice Hotels go up and down completely randomly.

Pair Corralation between Impinj and Choice Hotels

Allowing for the 90-day total investment horizon Impinj Inc is expected to generate 2.31 times more return on investment than Choice Hotels. However, Impinj is 2.31 times more volatile than Choice Hotels International. It trades about -0.06 of its potential returns per unit of risk. Choice Hotels International is currently generating about -0.22 per unit of risk. If you would invest  20,078  in Impinj Inc on September 7, 2025 and sell it today you would lose (4,252) from holding Impinj Inc or give up 21.18% of portfolio value over 90 days.

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

Impinj Inc  vs.  Choice Hotels International

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 inconsistent 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.

Choice Hotels Intern

Risk-Adjusted Performance

Weakest

Over the last 90 days Choice Hotels International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical 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 Impinj and Choice Hotels

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

The idea behind Impinj Inc and Choice Hotels International 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.