Correlation Between Jacobs Solutions and Cimpress
Can any of the company-specific risk be diversified away by investing in both Jacobs Solutions 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 Jacobs Solutions and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacobs Solutions and Cimpress NV, you can compare the effects of market volatilities on Jacobs Solutions 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 Jacobs Solutions with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacobs Solutions and Cimpress.
Diversification Opportunities for Jacobs Solutions and Cimpress
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jacobs and Cimpress is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jacobs Solutions and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Jacobs Solutions 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 Jacobs Solutions 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 Jacobs Solutions i.e., Jacobs Solutions and Cimpress go up and down completely randomly.
Pair Corralation between Jacobs Solutions and Cimpress
Taking into account the 90-day investment horizon Jacobs Solutions is expected to under-perform the Cimpress. But the stock apears to be less risky and, when comparing its historical volatility, Jacobs Solutions is 1.55 times less risky than Cimpress. The stock trades about -0.08 of its potential returns per unit of risk. The Cimpress NV is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,716 in Cimpress NV on August 24, 2024 and sell it today you would earn a total of 409.00 from holding Cimpress NV or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacobs Solutions vs. Cimpress NV
Performance |
| Timeline |
| Jacobs Solutions |
| Cimpress NV |
Jacobs Solutions and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacobs Solutions and Cimpress
The main advantage of trading using opposite Jacobs Solutions and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacobs Solutions 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.| Jacobs Solutions vs. KBR Inc | Jacobs Solutions vs. Tetra Tech | Jacobs Solutions vs. Fluor | Jacobs Solutions vs. Topbuild Corp |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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