Correlation Between Stagwell and Cimpress
Can any of the company-specific risk be diversified away by investing in both Stagwell 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 Stagwell and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Cimpress NV, you can compare the effects of market volatilities on Stagwell 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 Stagwell with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Cimpress.
Diversification Opportunities for Stagwell and Cimpress
Very poor diversification
The 3 months correlation between Stagwell and Cimpress is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and Stagwell 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 Stagwell 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 Stagwell i.e., Stagwell and Cimpress go up and down completely randomly.
Pair Corralation between Stagwell and Cimpress
Given the investment horizon of 90 days Stagwell is expected to generate 1.46 times less return on investment than Cimpress. But when comparing it to its historical volatility, Stagwell is 1.04 times less risky than Cimpress. It trades about 0.12 of its potential returns per unit of risk. Cimpress NV is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,625 in Cimpress NV on June 9, 2025 and sell it today you would earn a total of 1,656 from holding Cimpress NV or generate 35.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. Cimpress NV
Performance |
| Timeline |
| Stagwell |
| Cimpress NV |
Stagwell and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Cimpress
The main advantage of trading using opposite Stagwell and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell 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.| Stagwell vs. Integral Ad Science | Stagwell vs. Travelzoo | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV |
| Cimpress vs. ATN International | Cimpress vs. Criteo Sa | Cimpress vs. Deluxe | Cimpress vs. Emerald Expositions Events |
Check out your portfolio center.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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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