Correlation Between Cimpress and ScanSource
Can any of the company-specific risk be diversified away by investing in both Cimpress and ScanSource 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 ScanSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and ScanSource, you can compare the effects of market volatilities on Cimpress and ScanSource 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 ScanSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and ScanSource.
Diversification Opportunities for Cimpress and ScanSource
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cimpress and ScanSource is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and ScanSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanSource 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 ScanSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanSource has no effect on the direction of Cimpress i.e., Cimpress and ScanSource go up and down completely randomly.
Pair Corralation between Cimpress and ScanSource
Given the investment horizon of 90 days Cimpress NV is expected to generate 1.65 times more return on investment than ScanSource. However, Cimpress is 1.65 times more volatile than ScanSource. It trades about 0.09 of its potential returns per unit of risk. ScanSource is currently generating about 0.06 per unit of risk. If you would invest 2,535 in Cimpress NV on August 31, 2024 and sell it today you would earn a total of 5,511 from holding Cimpress NV or generate 217.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Cimpress NV vs. ScanSource
Performance |
| Timeline |
| Cimpress NV |
| ScanSource |
Cimpress and ScanSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and ScanSource
The main advantage of trading using opposite Cimpress and ScanSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, ScanSource 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 ScanSource will offset losses from the drop in ScanSource's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| ScanSource vs. Climb Global Solutions | ScanSource vs. Insight Enterprises | ScanSource vs. Synnex | ScanSource vs. PC Connection |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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