Correlation Between Sabre Corpo and Cimpress
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and Cimpress NV, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Cimpress.
Diversification Opportunities for Sabre Corpo and Cimpress
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabre and Cimpress is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Cimpress go up and down completely randomly.
Pair Corralation between Sabre Corpo and Cimpress
Given the investment horizon of 90 days Sabre Corpo is expected to generate 1.67 times less return on investment than Cimpress. In addition to that, Sabre Corpo is 1.42 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 0.02 per unit of volatility. If you would invest 7,605 in Cimpress NV on September 4, 2024 and sell it today you would earn a total of 424.00 from holding Cimpress NV or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. Cimpress NV
Performance |
| Timeline |
| Sabre Corpo |
| Cimpress NV |
Sabre Corpo and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Cimpress
The main advantage of trading using opposite Sabre Corpo and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Expedia Group | Sabre Corpo vs. Trip Group Ltd | Sabre Corpo vs. Booking Holdings | Sabre Corpo vs. Despegar 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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