Correlation Between Spire Global and Cimpress
Can any of the company-specific risk be diversified away by investing in both Spire Global 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 Spire Global and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Cimpress NV, you can compare the effects of market volatilities on Spire Global 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 Spire Global with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Cimpress.
Diversification Opportunities for Spire Global and Cimpress
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Spire and Cimpress is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Spire Global 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 Spire Global 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 Spire Global i.e., Spire Global and Cimpress go up and down completely randomly.
Pair Corralation between Spire Global and Cimpress
Given the investment horizon of 90 days Spire Global is expected to generate 1.44 times more return on investment than Cimpress. However, Spire Global is 1.44 times more volatile than Cimpress NV. It trades about 0.57 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.09 per unit of risk. If you would invest 900.00 in Spire Global on August 24, 2024 and sell it today you would earn a total of 695.00 from holding Spire Global or generate 77.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spire Global vs. Cimpress NV
Performance |
| Timeline |
| Spire Global |
| Cimpress NV |
Spire Global and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Cimpress
The main advantage of trading using opposite Spire Global and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global 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.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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