Correlation Between Cimpress and Globavend Holdings
Can any of the company-specific risk be diversified away by investing in both Cimpress and Globavend 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 Globavend 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 Globavend Holdings Limited, you can compare the effects of market volatilities on Cimpress and Globavend 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 Globavend Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Globavend Holdings.
Diversification Opportunities for Cimpress and Globavend Holdings
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and Globavend is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Globavend Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globavend Holdings 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 Globavend Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globavend Holdings has no effect on the direction of Cimpress i.e., Cimpress and Globavend Holdings go up and down completely randomly.
Pair Corralation between Cimpress and Globavend Holdings
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.35 times more return on investment than Globavend Holdings. However, Cimpress NV is 2.87 times less risky than Globavend Holdings. It trades about 0.03 of its potential returns per unit of risk. Globavend Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest 7,390 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 640.00 from holding Cimpress NV or generate 8.66% 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. Globavend Holdings Limited
Performance |
| Timeline |
| Cimpress NV |
| Globavend Holdings |
Cimpress and Globavend Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Globavend Holdings
The main advantage of trading using opposite Cimpress and Globavend Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Globavend 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 Globavend Holdings will offset losses from the drop in Globavend Holdings' 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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