Correlation Between Cimpress and Daily Journal

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

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

Diversification Opportunities for Cimpress and Daily Journal

0.81

Correlation Coefficient

Cimpress  Daily Journal

Very poor diversification

The 3 months correlation between Cimpress and Daily is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Daily Journal Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daily Journal 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 Daily Journal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daily Journal Corp has no effect on the direction of Cimpress i.e., Cimpress and Daily Journal go up and down completely randomly.

Pair Corralation between Cimpress and Daily Journal

Given the investment horizon of 90 days Cimpress NV is expected to under-perform the Daily Journal. In addition to that, Cimpress is 1.14 times more volatile than Daily Journal Corp. It trades about -0.24 of its total potential returns per unit of risk. Daily Journal Corp is currently generating about -0.18 per unit of volatility. If you would invest  55,605  in Daily Journal Corp on December 29, 2024 and sell it today you would lose (14,615) from holding Daily Journal Corp or give up 26.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Cimpress NV  vs.  Daily Journal 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.

Daily Journal Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daily Journal Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Cimpress and Daily Journal

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

The idea behind Cimpress NV and Daily Journal 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.