Correlation Between Cimpress and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both Cimpress and Cumulus Media 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 Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Cumulus Media Class, you can compare the effects of market volatilities on Cimpress and Cumulus Media 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 Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Cumulus Media.
Diversification Opportunities for Cimpress and Cumulus Media
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cimpress and Cumulus is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of Cimpress i.e., Cimpress and Cumulus Media go up and down completely randomly.
Pair Corralation between Cimpress and Cumulus Media
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.81 times more return on investment than Cumulus Media. However, Cimpress NV is 1.23 times less risky than Cumulus Media. It trades about 0.08 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.08 per unit of risk. If you would invest 2,632 in Cimpress NV on September 5, 2024 and sell it today you would earn a total of 5,397 from holding Cimpress NV or generate 205.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Cumulus Media Class
Performance |
| Timeline |
| Cimpress NV |
| Cumulus Media Class |
Cimpress and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Cumulus Media
The main advantage of trading using opposite Cimpress and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |