Correlation Between Cimpress and Vine Hill
Can any of the company-specific risk be diversified away by investing in both Cimpress and Vine Hill 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 Vine Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Vine Hill Capital, you can compare the effects of market volatilities on Cimpress and Vine Hill 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 Vine Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Vine Hill.
Diversification Opportunities for Cimpress and Vine Hill
Very good diversification
The 3 months correlation between Cimpress and Vine is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Vine Hill Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vine Hill Capital 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 Vine Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vine Hill Capital has no effect on the direction of Cimpress i.e., Cimpress and Vine Hill go up and down completely randomly.
Pair Corralation between Cimpress and Vine Hill
Given the investment horizon of 90 days Cimpress NV is expected to generate 14.26 times more return on investment than Vine Hill. However, Cimpress is 14.26 times more volatile than Vine Hill Capital. It trades about 0.07 of its potential returns per unit of risk. Vine Hill Capital is currently generating about 0.26 per unit of risk. If you would invest 7,340 in Cimpress NV on October 23, 2024 and sell it today you would earn a total of 145.00 from holding Cimpress NV or generate 1.98% 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. Vine Hill Capital
Performance |
| Timeline |
| Cimpress NV |
| Vine Hill Capital |
Cimpress and Vine Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Vine Hill
The main advantage of trading using opposite Cimpress and Vine Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Vine Hill 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 Vine Hill will offset losses from the drop in Vine Hill's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Vine Hill vs. National Vision Holdings | Vine Hill vs. Celsius Holdings | Vine Hill vs. MOGU Inc | Vine Hill vs. ScanSource |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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