Correlation Between Cimpress and ESGL Holdings
Can any of the company-specific risk be diversified away by investing in both Cimpress and ESGL Holdings 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 ESGL Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and ESGL Holdings Limited, you can compare the effects of market volatilities on Cimpress and ESGL Holdings 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 ESGL Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and ESGL Holdings.
Diversification Opportunities for Cimpress and ESGL Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and ESGL is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and ESGL Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGL Holdings Limited 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 ESGL Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGL Holdings Limited has no effect on the direction of Cimpress i.e., Cimpress and ESGL Holdings go up and down completely randomly.
Pair Corralation between Cimpress and ESGL Holdings
Given the investment horizon of 90 days Cimpress NV is expected to under-perform the ESGL Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Cimpress NV is 47.6 times less risky than ESGL Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The ESGL Holdings Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.67 in ESGL Holdings Limited on August 27, 2024 and sell it today you would earn a total of 1.16 from holding ESGL Holdings Limited or generate 173.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.66% |
| Values | Daily Returns |
Cimpress NV vs. ESGL Holdings Limited
Performance |
| Timeline |
| Cimpress NV |
| ESGL Holdings Limited |
Cimpress and ESGL Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and ESGL Holdings
The main advantage of trading using opposite Cimpress and ESGL Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, ESGL Holdings 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 ESGL Holdings will offset losses from the drop in ESGL Holdings' long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| ESGL Holdings vs. Harmony Gold Mining | ESGL Holdings vs. KNOT Offshore Partners | ESGL Holdings vs. Seadrill Limited | ESGL Holdings vs. Parker Hannifin |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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