Correlation Between Cimpress and Stagwell
Can any of the company-specific risk be diversified away by investing in both Cimpress and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Stagwell, you can compare the effects of market volatilities on Cimpress and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Stagwell.
Diversification Opportunities for Cimpress and Stagwell
Modest diversification
The 3 months correlation between Cimpress and Stagwell is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Cimpress i.e., Cimpress and Stagwell go up and down completely randomly.
Pair Corralation between Cimpress and Stagwell
Given the investment horizon of 90 days Cimpress is expected to generate 2.95 times less return on investment than Stagwell. But when comparing it to its historical volatility, Cimpress NV is 1.07 times less risky than Stagwell. It trades about 0.03 of its potential returns per unit of risk. Stagwell is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 521.00 in Stagwell on August 27, 2024 and sell it today you would earn a total of 261.00 from holding Stagwell or generate 50.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Stagwell
Performance |
| Timeline |
| Cimpress NV |
| Stagwell |
Cimpress and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Stagwell
The main advantage of trading using opposite Cimpress and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |