Correlation Between Paysafe and Cimpress

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

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

Diversification Opportunities for Paysafe and Cimpress

0.39

Correlation Coefficient

Paysafe  Cimpress

Weak diversification

The 3 months correlation between Paysafe and Cimpress is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Paysafe 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 Paysafe 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 Paysafe i.e., Paysafe and Cimpress go up and down completely randomly.

Pair Corralation between Paysafe and Cimpress

Given the investment horizon of 90 days Paysafe is expected to under-perform the Cimpress. In addition to that, Paysafe is 1.57 times more volatile than Cimpress NV. It trades about -0.06 of its total potential returns per unit of risk. Cimpress NV is currently generating about -0.01 per unit of volatility. If you would invest  7,692  in Cimpress NV on October 22, 2024 and sell it today you would lose (311.00) from holding Cimpress NV or give up 4.04% of portfolio value over 90 days.

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

Paysafe  vs.  Cimpress NV

Paysafe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysafe 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 relatively invariable basic indicators, Cimpress is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Paysafe and Cimpress

The main advantage of trading using opposite Paysafe and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe 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 Paysafe 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.