Correlation Between Cimpress and Quotient Technology
Can any of the company-specific risk be diversified away by investing in both Cimpress and Quotient Technology 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 Quotient Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Quotient Technology, you can compare the effects of market volatilities on Cimpress and Quotient Technology 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 Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Quotient Technology.
Diversification Opportunities for Cimpress and Quotient Technology
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cimpress and Quotient is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology 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 Quotient Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quotient Technology has no effect on the direction of Cimpress i.e., Cimpress and Quotient Technology go up and down completely randomly.
Pair Corralation between Cimpress and Quotient Technology
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.99 times more return on investment than Quotient Technology. However, Cimpress NV is 1.01 times less risky than Quotient Technology. It trades about 0.07 of its potential returns per unit of risk. Quotient Technology is currently generating about 0.06 per unit of risk. If you would invest 2,986 in Cimpress NV on August 24, 2024 and sell it today you would earn a total of 5,147 from holding Cimpress NV or generate 172.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Cimpress NV vs. Quotient Technology
Performance |
| Timeline |
| Cimpress NV |
| Quotient Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cimpress and Quotient Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Quotient Technology
The main advantage of trading using opposite Cimpress and Quotient Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Quotient Technology 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 Quotient Technology will offset losses from the drop in Quotient Technology's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Quotient Technology vs. Emerald Expositions Events | Quotient Technology vs. Mirriad Advertising plc | Quotient Technology vs. INEO Tech Corp | Quotient Technology vs. Marchex |
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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