Correlation Between KVH Industries and Cimpress
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Cimpress NV, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Cimpress.
Diversification Opportunities for KVH Industries and Cimpress
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KVH and Cimpress is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and Cimpress go up and down completely randomly.
Pair Corralation between KVH Industries and Cimpress
Given the investment horizon of 90 days KVH Industries is expected to generate 1.2 times less return on investment than Cimpress. But when comparing it to its historical volatility, KVH Industries is 1.15 times less risky than Cimpress. It trades about 0.02 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,390 in Cimpress NV on September 2, 2024 and sell it today you would earn a total of 640.00 from holding Cimpress NV or generate 8.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Cimpress NV
Performance |
| Timeline |
| KVH Industries |
| Cimpress NV |
KVH Industries and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Cimpress
The main advantage of trading using opposite KVH Industries and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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