Correlation Between ZW Data and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both ZW Data 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 ZW Data and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZW Data Action and Criteo Sa, you can compare the effects of market volatilities on ZW Data 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 ZW Data with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Criteo Sa.
Diversification Opportunities for ZW Data and Criteo Sa
Weak diversification
The 3 months correlation between CNET and Criteo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and ZW Data 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 ZW Data Action 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 ZW Data i.e., ZW Data and Criteo Sa go up and down completely randomly.
Pair Corralation between ZW Data and Criteo Sa
Given the investment horizon of 90 days ZW Data Action is expected to under-perform the Criteo Sa. In addition to that, ZW Data is 1.82 times more volatile than Criteo Sa. It trades about -0.27 of its total potential returns per unit of risk. Criteo Sa is currently generating about 0.05 per unit of volatility. If you would invest 4,024 in Criteo Sa on August 30, 2024 and sell it today you would earn a total of 210.00 from holding Criteo Sa or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZW Data Action vs. Criteo Sa
Performance |
| Timeline |
| ZW Data Action |
| Criteo Sa |
ZW Data and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZW Data and Criteo Sa
The main advantage of trading using opposite ZW Data and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZW Data 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.| ZW Data vs. Capital Income Builder | ZW Data vs. Direxion Daily FTSE | ZW Data vs. Dodge Global Stock | ZW Data vs. Collegium Pharmaceutical |
| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |