Correlation Between Cimpress and Playtika Holding
Can any of the company-specific risk be diversified away by investing in both Cimpress and Playtika Holding 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 Playtika Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Playtika Holding Corp, you can compare the effects of market volatilities on Cimpress and Playtika Holding 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 Playtika Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Playtika Holding.
Diversification Opportunities for Cimpress and Playtika Holding
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and Playtika is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Playtika Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Playtika Holding Corp 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 Playtika Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Playtika Holding Corp has no effect on the direction of Cimpress i.e., Cimpress and Playtika Holding go up and down completely randomly.
Pair Corralation between Cimpress and Playtika Holding
Given the investment horizon of 90 days Cimpress NV is expected to generate 1.22 times more return on investment than Playtika Holding. However, Cimpress is 1.22 times more volatile than Playtika Holding Corp. It trades about 0.03 of its potential returns per unit of risk. Playtika Holding Corp is currently generating about 0.02 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. Playtika Holding Corp
Performance |
| Timeline |
| Cimpress NV |
| Playtika Holding Corp |
Cimpress and Playtika Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Playtika Holding
The main advantage of trading using opposite Cimpress and Playtika Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Playtika Holding 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 Playtika Holding will offset losses from the drop in Playtika Holding's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Playtika Holding vs. Gravity Co | Playtika Holding vs. NetEase | Playtika Holding vs. Snail, Class A | Playtika Holding vs. GameSquare Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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