Correlation Between AMREP and Cimpress
Can any of the company-specific risk be diversified away by investing in both AMREP 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 AMREP and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Cimpress NV, you can compare the effects of market volatilities on AMREP 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 AMREP with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Cimpress.
Diversification Opportunities for AMREP and Cimpress
Excellent diversification
The 3 months correlation between AMREP and Cimpress is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and AMREP 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 AMREP 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 AMREP i.e., AMREP and Cimpress go up and down completely randomly.
Pair Corralation between AMREP and Cimpress
Considering the 90-day investment horizon AMREP is expected to generate 1.4 times more return on investment than Cimpress. However, AMREP is 1.4 times more volatile than Cimpress NV. It trades about 0.24 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.09 per unit of risk. If you would invest 3,000 in AMREP on August 27, 2024 and sell it today you would earn a total of 720.00 from holding AMREP or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMREP vs. Cimpress NV
Performance |
| Timeline |
| AMREP |
| Cimpress NV |
AMREP and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Cimpress
The main advantage of trading using opposite AMREP and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP 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.| AMREP vs. Park Electrochemical | AMREP vs. Innovative Solutions and | AMREP vs. Curtiss Wright | AMREP vs. National Presto Industries |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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