Correlation Between EQ and Cimpress
Can any of the company-specific risk be diversified away by investing in both EQ and Cimpress 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 EQ and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EQ Inc and Cimpress NV, you can compare the effects of market volatilities on EQ and Cimpress 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 EQ with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQ and Cimpress.
Diversification Opportunities for EQ and Cimpress
Pay attention - limited upside
The 3 months correlation between EQ and Cimpress is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EQ Inc and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and EQ 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 EQ Inc are associated (or correlated) with Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of EQ i.e., EQ and Cimpress go up and down completely randomly.
Pair Corralation between EQ and Cimpress
If you would invest 7,586 in Cimpress NV on August 26, 2024 and sell it today you would earn a total of 547.00 from holding Cimpress NV or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
EQ Inc vs. Cimpress NV
Performance |
| Timeline |
| EQ Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cimpress NV |
EQ and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQ and Cimpress
The main advantage of trading using opposite EQ and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQ position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.The idea behind EQ Inc and Cimpress NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |