Correlation Between Cimpress and GP Strategies

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

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

Diversification Opportunities for Cimpress and GP Strategies

0.0

Correlation Coefficient

Cimpress  GP Strategies

Pay attention - limited upside

The 3 months correlation between Cimpress and GPX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and GP Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Strategies 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 GP Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Strategies has no effect on the direction of Cimpress i.e., Cimpress and GP Strategies go up and down completely randomly.

Pair Corralation between Cimpress and GP Strategies

If you would invest (100.00) in GP Strategies on February 12, 2024 and sell it today you would earn a total of  100.00  from holding GP Strategies or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cimpress NV  vs.  GP Strategies

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.

GP Strategies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GP Strategies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, GP Strategies is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cimpress and GP Strategies

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

The idea behind Cimpress NV and GP Strategies 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.