Correlation Between Cimpress and Sandstorm Gold
Can any of the company-specific risk be diversified away by investing in both Cimpress and Sandstorm Gold 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 Sandstorm Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Sandstorm Gold Ltd, you can compare the effects of market volatilities on Cimpress and Sandstorm Gold 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 Sandstorm Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Sandstorm Gold.
Diversification Opportunities for Cimpress and Sandstorm Gold
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cimpress and Sandstorm is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Sandstorm Gold Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandstorm Gold 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 Sandstorm Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandstorm Gold has no effect on the direction of Cimpress i.e., Cimpress and Sandstorm Gold go up and down completely randomly.
Pair Corralation between Cimpress and Sandstorm Gold
Given the investment horizon of 90 days Cimpress NV is expected to generate 1.21 times more return on investment than Sandstorm Gold. However, Cimpress is 1.21 times more volatile than Sandstorm Gold Ltd. It trades about 0.07 of its potential returns per unit of risk. Sandstorm Gold Ltd is currently generating about 0.01 per unit of risk. If you would invest 4,426 in Cimpress NV on August 31, 2024 and sell it today you would earn a total of 3,620 from holding Cimpress NV or generate 81.79% 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. Sandstorm Gold Ltd
Performance |
| Timeline |
| Cimpress NV |
| Sandstorm Gold |
Cimpress and Sandstorm Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Sandstorm Gold
The main advantage of trading using opposite Cimpress and Sandstorm Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Sandstorm Gold 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 Sandstorm Gold will offset losses from the drop in Sandstorm Gold's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Sandstorm Gold vs. Franco Nevada | Sandstorm Gold vs. Alamos Gold | Sandstorm Gold vs. Seabridge Gold | Sandstorm Gold vs. Wheaton Precious Metals |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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