Correlation Between Cimpress and AdTheorent Holding

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

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

Diversification Opportunities for Cimpress and AdTheorent Holding

0.0

Correlation Coefficient

Cimpress  AdTheorent Holding

Pay attention - limited upside

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

Pair Corralation between Cimpress and AdTheorent Holding

If you would invest  4,010  in Cimpress NV on May 5, 2025 and sell it today you would earn a total of  1,309  from holding Cimpress NV or generate 32.64% return on investment over 90 days.

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

Cimpress NV  vs.  AdTheorent Holding

Cimpress NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cimpress NV are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Cimpress reported solid returns over the last few months and may actually be approaching a breakup point.

AdTheorent Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdTheorent Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AdTheorent Holding is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cimpress and AdTheorent Holding

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

The idea behind Cimpress NV and AdTheorent Holding 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.