Correlation Between Cimpress and Integral

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

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

Diversification Opportunities for Cimpress and Integral

0.45

Correlation Coefficient

Cimpress  Integral

Very weak diversification

The 3 months correlation between Cimpress and Integral is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science 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 Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Cimpress i.e., Cimpress and Integral go up and down completely randomly.

Pair Corralation between Cimpress and Integral

Given the investment horizon of 90 days Cimpress NV is expected to under-perform the Integral. In addition to that, Cimpress is 1.25 times more volatile than Integral Ad Science. It trades about -0.24 of its total potential returns per unit of risk. Integral Ad Science is currently generating about -0.15 per unit of volatility. If you would invest  1,038  in Integral Ad Science on December 30, 2024 and sell it today you would lose (214.00) from holding Integral Ad Science or give up 20.62% of portfolio value over 90 days.

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

Cimpress NV  vs.  Integral Ad Science

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.

Integral Ad Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integral Ad Science 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 basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cimpress and Integral

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

The idea behind Cimpress NV and Integral Ad Science 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.