Correlation Between Cimpress and Zhihu
Can any of the company-specific risk be diversified away by investing in both Cimpress and Zhihu 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 Zhihu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Zhihu Inc ADR, you can compare the effects of market volatilities on Cimpress and Zhihu 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 Zhihu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Zhihu.
Diversification Opportunities for Cimpress and Zhihu
Very good diversification
The 3 months correlation between Cimpress and Zhihu is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Zhihu Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhihu Inc ADR 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 Zhihu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhihu Inc ADR has no effect on the direction of Cimpress i.e., Cimpress and Zhihu go up and down completely randomly.
Pair Corralation between Cimpress and Zhihu
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.58 times more return on investment than Zhihu. However, Cimpress NV is 1.71 times less risky than Zhihu. It trades about 0.29 of its potential returns per unit of risk. Zhihu Inc ADR is currently generating about 0.03 per unit of risk. If you would invest 6,901 in Cimpress NV on September 1, 2024 and sell it today you would earn a total of 1,129 from holding Cimpress NV or generate 16.36% 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. Zhihu Inc ADR
Performance |
| Timeline |
| Cimpress NV |
| Zhihu Inc ADR |
Cimpress and Zhihu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Zhihu
The main advantage of trading using opposite Cimpress and Zhihu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Zhihu 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 Zhihu will offset losses from the drop in Zhihu's long position.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| Zhihu vs. Tencent Music Entertainment | Zhihu vs. Weibo Corp | Zhihu vs. DouYu International Holdings | Zhihu vs. Baidu Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
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| Fundamental Analysis View fundamental data based on most recent published financial statements |