Correlation Between Criteo Sa and Advantage Solutions
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Advantage Solutions 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 Criteo Sa and Advantage Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Advantage Solutions, you can compare the effects of market volatilities on Criteo Sa and Advantage Solutions 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 Criteo Sa with a short position of Advantage Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Advantage Solutions.
Diversification Opportunities for Criteo Sa and Advantage Solutions
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Criteo and Advantage is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Advantage Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantage Solutions and Criteo Sa 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 Criteo Sa are associated (or correlated) with Advantage Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantage Solutions has no effect on the direction of Criteo Sa i.e., Criteo Sa and Advantage Solutions go up and down completely randomly.
Pair Corralation between Criteo Sa and Advantage Solutions
Given the investment horizon of 90 days Criteo Sa is expected to under-perform the Advantage Solutions. In addition to that, Criteo Sa is 1.25 times more volatile than Advantage Solutions. It trades about -0.03 of its total potential returns per unit of risk. Advantage Solutions is currently generating about 0.15 per unit of volatility. If you would invest 306.00 in Advantage Solutions on August 24, 2024 and sell it today you would earn a total of 38.00 from holding Advantage Solutions or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. Advantage Solutions
Performance |
| Timeline |
| Criteo Sa |
| Advantage Solutions |
Criteo Sa and Advantage Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Advantage Solutions
The main advantage of trading using opposite Criteo Sa and Advantage Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Advantage Solutions 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 Advantage Solutions will offset losses from the drop in Advantage Solutions' long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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