Correlation Between Criteo Sa and QuinStreet
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and QuinStreet 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 QuinStreet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and QuinStreet, you can compare the effects of market volatilities on Criteo Sa and QuinStreet 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 QuinStreet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and QuinStreet.
Diversification Opportunities for Criteo Sa and QuinStreet
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Criteo and QuinStreet is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and QuinStreet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuinStreet 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 QuinStreet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuinStreet has no effect on the direction of Criteo Sa i.e., Criteo Sa and QuinStreet go up and down completely randomly.
Pair Corralation between Criteo Sa and QuinStreet
Given the investment horizon of 90 days Criteo Sa is expected to under-perform the QuinStreet. In addition to that, Criteo Sa is 1.25 times more volatile than QuinStreet. It trades about -0.02 of its total potential returns per unit of risk. QuinStreet is currently generating about 0.23 per unit of volatility. If you would invest 1,861 in QuinStreet on August 23, 2024 and sell it today you would earn a total of 386.00 from holding QuinStreet or generate 20.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. QuinStreet
Performance |
| Timeline |
| Criteo Sa |
| QuinStreet |
Criteo Sa and QuinStreet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and QuinStreet
The main advantage of trading using opposite Criteo Sa and QuinStreet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, QuinStreet 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 QuinStreet will offset losses from the drop in QuinStreet's long position.The idea behind Criteo Sa and QuinStreet 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.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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