Correlation Between Cimpress and Block
Can any of the company-specific risk be diversified away by investing in both Cimpress and Block 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 Block into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Block Inc, you can compare the effects of market volatilities on Cimpress and Block 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 Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Block.
Diversification Opportunities for Cimpress and Block
Very good diversification
The 3 months correlation between Cimpress and Block is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Block Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Block Inc 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 Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Block Inc has no effect on the direction of Cimpress i.e., Cimpress and Block go up and down completely randomly.
Pair Corralation between Cimpress and Block
Given the investment horizon of 90 days Cimpress NV is expected to under-perform the Block. In addition to that, Cimpress is 1.03 times more volatile than Block Inc. It trades about -0.05 of its total potential returns per unit of risk. Block Inc is currently generating about 0.21 per unit of volatility. If you would invest 6,556 in Block Inc on August 26, 2024 and sell it today you would earn a total of 2,670 from holding Block Inc or generate 40.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Block Inc
Performance |
| Timeline |
| Cimpress NV |
| Block Inc |
Cimpress and Block Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Block
The main advantage of trading using opposite Cimpress and Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Block 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 Block will offset losses from the drop in Block's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Block vs. Oneconnect Financial Technology | Block vs. Global Business Travel | Block vs. Alight Inc | Block vs. CS Disco LLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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