Correlation Between Integral and Cimpress
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Cimpress NV, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Cimpress.
Diversification Opportunities for Integral and Cimpress
Very weak diversification
The 3 months correlation between Integral and Cimpress is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Integral 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 Integral Ad Science 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 Integral i.e., Integral and Cimpress go up and down completely randomly.
Pair Corralation between Integral and Cimpress
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Cimpress. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 1.08 times less risky than Cimpress. The stock trades about -0.14 of its potential returns per unit of risk. The Cimpress NV is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 8,125 in Cimpress NV on October 22, 2024 and sell it today you would lose (744.00) from holding Cimpress NV or give up 9.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Cimpress NV
Performance |
| Timeline |
| Integral Ad Science |
| Cimpress NV |
Integral and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Cimpress
The main advantage of trading using opposite Integral and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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 Integral Ad Science 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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