Correlation Between Cimpress and Innovid Corp

Can any of the company-specific risk be diversified away by investing in both Cimpress and Innovid Corp 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 Cimpress and Innovid Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cimpress NV and Innovid Corp, you can compare the effects of market volatilities on Cimpress and Innovid Corp 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 Cimpress with a short position of Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Innovid Corp.

Diversification Opportunities for Cimpress and Innovid Corp

0.48

Correlation Coefficient

Cimpress  Innovid Corp

Very weak diversification

The 3 months correlation between Cimpress and Innovid is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Cimpress 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 Cimpress NV are associated (or correlated) with Innovid Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovid Corp has no effect on the direction of Cimpress i.e., Cimpress and Innovid Corp go up and down completely randomly.

Pair Corralation between Cimpress and Innovid Corp

Given the investment horizon of 90 days Cimpress NV is expected to under-perform the Innovid Corp. In addition to that, Cimpress is 4.97 times more volatile than Innovid Corp. It trades about -0.24 of its total potential returns per unit of risk. Innovid Corp is currently generating about 0.09 per unit of volatility. If you would invest  309.00  in Innovid Corp on December 29, 2024 and sell it today you would earn a total of  5.00  from holding Innovid Corp or generate 1.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	50.82%
Values	Daily Returns

Cimpress NV  vs.  Innovid Corp

Cimpress NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cimpress NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Innovid Corp

Risk-Adjusted Performance

OK

Over the last 90 days Innovid Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Innovid Corp is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cimpress and Innovid Corp

The main advantage of trading using opposite Cimpress and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress position performs unexpectedly, Innovid Corp 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 Innovid Corp will offset losses from the drop in Innovid Corp's long position.

The idea behind Cimpress NV and Innovid Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.