Correlation Between Cimpress and Kforce

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

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

Diversification Opportunities for Cimpress and Kforce

0.94

Correlation Coefficient

Cimpress  Kforce

Almost no diversification

The 3 months correlation between Cimpress and Kforce is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and Kforce Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kforce Inc 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 Kforce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kforce Inc has no effect on the direction of Cimpress i.e., Cimpress and Kforce go up and down completely randomly.

Pair Corralation between Cimpress and Kforce

Given the investment horizon of 90 days Cimpress NV is expected to under-perform the Kforce. In addition to that, Cimpress is 1.85 times more volatile than Kforce Inc. It trades about -0.24 of its total potential returns per unit of risk. Kforce Inc is currently generating about -0.13 per unit of volatility. If you would invest  5,611  in Kforce Inc on December 29, 2024 and sell it today you would lose (710.00) from holding Kforce Inc or give up 12.65% of portfolio value over 90 days.

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

Cimpress NV  vs.  Kforce Inc

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.

Kforce Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kforce Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cimpress and Kforce

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

The idea behind Cimpress NV and Kforce Inc 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.