Correlation Between Marchex and Cimpress
Can any of the company-specific risk be diversified away by investing in both Marchex 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 Marchex and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Cimpress NV, you can compare the effects of market volatilities on Marchex 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 Marchex with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Cimpress.
Diversification Opportunities for Marchex and Cimpress
Very weak diversification
The 3 months correlation between Marchex and Cimpress is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Marchex 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 Marchex 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 Marchex i.e., Marchex and Cimpress go up and down completely randomly.
Pair Corralation between Marchex and Cimpress
Given the investment horizon of 90 days Marchex is expected to under-perform the Cimpress. In addition to that, Marchex is 1.19 times more volatile than Cimpress NV. It trades about -0.01 of its total potential returns per unit of risk. Cimpress NV is currently generating about 0.09 per unit of volatility. 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Cimpress NV
Performance |
| Timeline |
| Marchex |
| Cimpress NV |
Marchex and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Cimpress
The main advantage of trading using opposite Marchex and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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