Correlation Between Comcast Corp and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Comcast Corp and Criteo Sa 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 Comcast Corp and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comcast Corp and Criteo Sa, you can compare the effects of market volatilities on Comcast Corp and Criteo Sa 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 Comcast Corp with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comcast Corp and Criteo Sa.
Diversification Opportunities for Comcast Corp and Criteo Sa
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Comcast and Criteo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Comcast Corp and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Comcast Corp 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 Comcast Corp are associated (or correlated) with Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Comcast Corp i.e., Comcast Corp and Criteo Sa go up and down completely randomly.
Pair Corralation between Comcast Corp and Criteo Sa
Assuming the 90 days horizon Comcast Corp is expected to generate 0.35 times more return on investment than Criteo Sa. However, Comcast Corp is 2.83 times less risky than Criteo Sa. It trades about 0.09 of its potential returns per unit of risk. Criteo Sa is currently generating about 0.01 per unit of risk. If you would invest 4,184 in Comcast Corp on August 28, 2024 and sell it today you would earn a total of 136.00 from holding Comcast Corp or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comcast Corp vs. Criteo Sa
Performance |
| Timeline |
| Comcast Corp |
| Criteo Sa |
Comcast Corp and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comcast Corp and Criteo Sa
The main advantage of trading using opposite Comcast Corp and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comcast Corp position performs unexpectedly, Criteo Sa 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 Criteo Sa will offset losses from the drop in Criteo Sa's long position.| Comcast Corp vs. Cable One | Comcast Corp vs. T Mobile | Comcast Corp vs. Altice USA | Comcast Corp vs. Verizon Communications |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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