Correlation Between Cimpress and BOS Better
Can any of the company-specific risk be diversified away by investing in both Cimpress and BOS Better 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 Cimpress and BOS Better into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and BOS Better Online, you can compare the effects of market volatilities on Cimpress and BOS Better 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 Cimpress with a short position of BOS Better. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and BOS Better.
Diversification Opportunities for Cimpress and BOS Better
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and BOS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and BOS Better Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS Better Online and Cimpress 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 Cimpress NV are associated (or correlated) with BOS Better. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS Better Online has no effect on the direction of Cimpress i.e., Cimpress and BOS Better go up and down completely randomly.
Pair Corralation between Cimpress and BOS Better
Given the investment horizon of 90 days Cimpress is expected to generate 1.6 times less return on investment than BOS Better. In addition to that, Cimpress is 1.55 times more volatile than BOS Better Online. It trades about 0.03 of its total potential returns per unit of risk. BOS Better Online is currently generating about 0.07 per unit of volatility. If you would invest 263.00 in BOS Better Online on September 3, 2024 and sell it today you would earn a total of 80.00 from holding BOS Better Online or generate 30.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. BOS Better Online
Performance |
| Timeline |
| Cimpress NV |
| BOS Better Online |
Cimpress and BOS Better Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and BOS Better
The main advantage of trading using opposite Cimpress and BOS Better positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, BOS Better 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 BOS Better will offset losses from the drop in BOS Better's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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