Correlation Between Cimpress and QuinStreet

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

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

Diversification Opportunities for Cimpress and QuinStreet

0.34

Correlation Coefficient

Cimpress  QuinStreet

Weak diversification

The 3 months correlation between Cimpress and QuinStreet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet 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 QuinStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuinStreet has no effect on the direction of Cimpress i.e., Cimpress and QuinStreet go up and down completely randomly.

Pair Corralation between Cimpress and QuinStreet

Given the investment horizon of 90 days Cimpress NV is expected to generate 1.13 times more return on investment than QuinStreet. However, Cimpress is 1.13 times more volatile than QuinStreet. It trades about 0.16 of its potential returns per unit of risk. QuinStreet is currently generating about -0.04 per unit of risk. If you would invest  4,007  in Cimpress NV on May 6, 2025 and sell it today you would earn a total of  1,312  from holding Cimpress NV or generate 32.74% return on investment over 90 days.

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

Cimpress NV  vs.  QuinStreet

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.

QuinStreet

Risk-Adjusted Performance

Very Weak

Over the last 90 days QuinStreet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, QuinStreet is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cimpress and QuinStreet

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

The idea behind Cimpress NV and QuinStreet 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .