Correlation Between ExlService Holdings and Cimpress

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

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

Diversification Opportunities for ExlService Holdings and Cimpress

0.62

Correlation Coefficient

ExlService Holdings  Cimpress

Poor diversification

The 3 months correlation between ExlService and Cimpress is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding ExlService Holdings and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and ExlService Holdings 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 ExlService Holdings 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 ExlService Holdings i.e., ExlService Holdings and Cimpress go up and down completely randomly.

Pair Corralation between ExlService Holdings and Cimpress

Given the investment horizon of 90 days ExlService Holdings is expected to generate 0.69 times more return on investment than Cimpress. However, ExlService Holdings is 1.44 times less risky than Cimpress. It trades about -0.05 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.2 per unit of risk. If you would invest  5,095  in ExlService Holdings on February 3, 2025 and sell it today you would lose (408.00) from holding ExlService Holdings or give up 8.01% of portfolio value over 90 days.

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

ExlService Holdings  vs.  Cimpress NV

ExlService Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Cimpress NV

Risk-Adjusted Performance

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 weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in June 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with ExlService Holdings and Cimpress

The main advantage of trading using opposite ExlService Holdings and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ExlService Holdings 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 ExlService Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..