Correlation Between Criteo Sa and Deluxe
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Deluxe 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 Deluxe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Deluxe, you can compare the effects of market volatilities on Criteo Sa and Deluxe 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 Deluxe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Deluxe.
Diversification Opportunities for Criteo Sa and Deluxe
Very good diversification
The 3 months correlation between Criteo and Deluxe is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Deluxe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deluxe 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 Deluxe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deluxe has no effect on the direction of Criteo Sa i.e., Criteo Sa and Deluxe go up and down completely randomly.
Pair Corralation between Criteo Sa and Deluxe
Given the investment horizon of 90 days Criteo Sa is expected to generate 0.95 times more return on investment than Deluxe. However, Criteo Sa is 1.05 times less risky than Deluxe. It trades about 0.05 of its potential returns per unit of risk. Deluxe is currently generating about 0.04 per unit of risk. If you would invest 2,637 in Criteo Sa on August 27, 2024 and sell it today you would earn a total of 1,359 from holding Criteo Sa or generate 51.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. Deluxe
Performance |
| Timeline |
| Criteo Sa |
| Deluxe |
Criteo Sa and Deluxe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Deluxe
The main advantage of trading using opposite Criteo Sa and Deluxe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Deluxe 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 Deluxe will offset losses from the drop in Deluxe's long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
| Deluxe vs. Park Electrochemical | Deluxe vs. Innovative Solutions and | Deluxe vs. Curtiss Wright | Deluxe vs. National Presto Industries |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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