Correlation Between Boeing and Cimpress

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Can any of the company-specific risk be diversified away by investing in both Boeing 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 Boeing and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Boeing and Cimpress NV, you can compare the effects of market volatilities on Boeing 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 Boeing with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boeing and Cimpress.

Diversification Opportunities for Boeing and Cimpress

BoeingCimpressDiversified AwayBoeingCimpressDiversified Away100%
-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Boeing and Cimpress is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Boeing and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Boeing 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 The Boeing 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 Boeing i.e., Boeing and Cimpress go up and down completely randomly.

Pair Corralation between Boeing and Cimpress

Allowing for the 90-day total investment horizon The Boeing is expected to generate 0.58 times more return on investment than Cimpress. However, The Boeing is 1.73 times less risky than Cimpress. It trades about 0.1 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.56 per unit of risk. If you would invest  17,480  in The Boeing on November 23, 2024 and sell it today you would earn a total of  598.50  from holding The Boeing or generate 3.42% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

The Boeing  vs.  Cimpress NV

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-1001020
JavaScript chart by amCharts 3.21.15BA CMPR
       Timeline  
Boeing 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Boeing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Boeing sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb150160170180
Cimpress NV 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Cimpress NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in March 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5055606570758085

Boeing and Cimpress Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.12-3.84-2.55-1.26-0.02141.372.814.255.77.14 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15BA CMPR
       Returns  

Pair Trading with Boeing and Cimpress

The main advantage of trading using opposite Boeing and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boeing 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.
The idea behind The Boeing and Cimpress NV 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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