Correlation Between Acme United and Cimpress
Can any of the company-specific risk be diversified away by investing in both Acme United and Cimpress 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 Acme United and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acme United and Cimpress NV, you can compare the effects of market volatilities on Acme United and Cimpress 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 Acme United with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acme United and Cimpress.
Diversification Opportunities for Acme United and Cimpress
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Acme and Cimpress is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Acme United and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Acme United 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 Acme United are associated (or correlated) with Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Acme United i.e., Acme United and Cimpress go up and down completely randomly.
Pair Corralation between Acme United and Cimpress
Considering the 90-day investment horizon Acme United is expected to generate 2.01 times less return on investment than Cimpress. But when comparing it to its historical volatility, Acme United is 1.94 times less risky than Cimpress. It trades about 0.08 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,716 in Cimpress NV on August 24, 2024 and sell it today you would earn a total of 409.00 from holding Cimpress NV or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acme United vs. Cimpress NV
Performance |
| Timeline |
| Acme United |
| Cimpress NV |
Acme United and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acme United and Cimpress
The main advantage of trading using opposite Acme United and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acme United position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| Acme United vs. Mannatech Incorporated | Acme United vs. European Wax Center | Acme United vs. Inter Parfums | Acme United vs. Spectrum Brands Holdings |
| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance |