Correlation Between Criteo Sa and Liberty Media
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Liberty Media 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 Liberty Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Liberty Media, you can compare the effects of market volatilities on Criteo Sa and Liberty Media 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 Liberty Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Liberty Media.
Diversification Opportunities for Criteo Sa and Liberty Media
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Criteo and Liberty is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Liberty Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Media 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 Liberty Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Media has no effect on the direction of Criteo Sa i.e., Criteo Sa and Liberty Media go up and down completely randomly.
Pair Corralation between Criteo Sa and Liberty Media
Given the investment horizon of 90 days Criteo Sa is expected to generate 23.02 times less return on investment than Liberty Media. But when comparing it to its historical volatility, Criteo Sa is 20.52 times less risky than Liberty Media. It trades about 0.04 of its potential returns per unit of risk. Liberty Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Liberty Media on August 24, 2024 and sell it today you would earn a total of 6,669 from holding Liberty Media or generate 1905.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 94.14% |
| Values | Daily Returns |
Criteo Sa vs. Liberty Media
Performance |
| Timeline |
| Criteo Sa |
| Liberty Media |
Criteo Sa and Liberty Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Liberty Media
The main advantage of trading using opposite Criteo Sa and Liberty Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Liberty Media 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 Liberty Media will offset losses from the drop in Liberty Media's long position.The idea behind Criteo Sa and Liberty Media 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.| Liberty Media vs. Comstock Holding Companies | Liberty Media vs. Jeld Wen Holding | Liberty Media vs. MYR Group | Liberty Media vs. PennantPark Investment |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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