Correlation Between Advantage Solutions and Cimpress
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions 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 Advantage Solutions and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Cimpress NV, you can compare the effects of market volatilities on Advantage Solutions 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 Advantage Solutions with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Cimpress.
Diversification Opportunities for Advantage Solutions and Cimpress
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advantage and Cimpress is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Advantage Solutions 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 Advantage Solutions 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 Advantage Solutions i.e., Advantage Solutions and Cimpress go up and down completely randomly.
Pair Corralation between Advantage Solutions and Cimpress
Considering the 90-day investment horizon Advantage Solutions is expected to generate 1.27 times more return on investment than Cimpress. However, Advantage Solutions is 1.27 times more volatile than Cimpress NV. It trades about 0.16 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.13 per unit of risk. If you would invest 317.00 in Advantage Solutions on August 28, 2024 and sell it today you would earn a total of 43.00 from holding Advantage Solutions or generate 13.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. Cimpress NV
Performance |
| Timeline |
| Advantage Solutions |
| Cimpress NV |
Advantage Solutions and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Cimpress
The main advantage of trading using opposite Advantage Solutions and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions 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.| Advantage Solutions vs. ADTRAN Inc | Advantage Solutions vs. Belden Inc | Advantage Solutions vs. ADC Therapeutics SA | Advantage Solutions vs. Comtech Telecommunications Corp |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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