Correlation Between International Consolidated and Cimpress

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

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

Diversification Opportunities for International Consolidated and Cimpress

0.13

Correlation Coefficient

International Consolidated  Cimpress

Average diversification

The 3 months correlation between International and Cimpress is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Com and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and International Consolidated 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 International Consolidated Companies 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 International Consolidated i.e., International Consolidated and Cimpress go up and down completely randomly.

Pair Corralation between International Consolidated and Cimpress

Given the investment horizon of 90 days International Consolidated Companies is expected to generate 44.17 times more return on investment than Cimpress. However, International Consolidated is 44.17 times more volatile than Cimpress NV. It trades about 0.26 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.19 per unit of risk. If you would invest  1.01  in International Consolidated Companies on September 27, 2024 and sell it today you would earn a total of  1.42  from holding International Consolidated Companies or generate 140.59% return on investment over 90 days.

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

International Consolidated Com  vs.  Cimpress NV

International Consolidated

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in International Consolidated Companies are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, International Consolidated exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cimpress NV

Risk-Adjusted Performance

0 of 100

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 latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with International Consolidated and Cimpress

The main advantage of trading using opposite International Consolidated and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.

The idea behind International Consolidated Companies and Cimpress NV 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.