Correlation Between Interpublic Group and Cimpress
Can any of the company-specific risk be diversified away by investing in both Interpublic Group 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 Interpublic Group and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group of and Cimpress NV, you can compare the effects of market volatilities on Interpublic Group 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 Interpublic Group with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and Cimpress.
Diversification Opportunities for Interpublic Group and Cimpress
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Interpublic and Cimpress is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group of and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Interpublic Group 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 Interpublic Group of 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 Interpublic Group i.e., Interpublic Group and Cimpress go up and down completely randomly.
Pair Corralation between Interpublic Group and Cimpress
Considering the 90-day investment horizon Interpublic Group of is expected to generate 0.5 times more return on investment than Cimpress. However, Interpublic Group of is 2.01 times less risky than Cimpress. It trades about 0.08 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.09 per unit of risk. If you would invest 2,813 in Interpublic Group of on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Interpublic Group of or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Interpublic Group of vs. Cimpress NV
Performance |
| Timeline |
| Interpublic Group |
| Cimpress NV |
Interpublic Group and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and Cimpress
The main advantage of trading using opposite Interpublic Group and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group 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.| Interpublic Group vs. Ziff Davis | Interpublic Group vs. Criteo Sa | Interpublic Group vs. WPP PLC ADR | Interpublic Group vs. Integral Ad Science |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |