Correlation Between Criteo Sa and Stagwell
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Stagwell, you can compare the effects of market volatilities on Criteo Sa and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Stagwell.
Diversification Opportunities for Criteo Sa and Stagwell
Modest diversification
The 3 months correlation between Criteo and Stagwell is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Criteo Sa i.e., Criteo Sa and Stagwell go up and down completely randomly.
Pair Corralation between Criteo Sa and Stagwell
Given the investment horizon of 90 days Criteo Sa is expected to generate 0.93 times more return on investment than Stagwell. However, Criteo Sa is 1.07 times less risky than Stagwell. It trades about -0.07 of its potential returns per unit of risk. Stagwell is currently generating about -0.06 per unit of risk. If you would invest 3,933 in Criteo Sa on November 3, 2024 and sell it today you would lose (134.00) from holding Criteo Sa or give up 3.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. Stagwell
Performance |
| Timeline |
| Criteo Sa |
| Stagwell |
Criteo Sa and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Stagwell
The main advantage of trading using opposite Criteo Sa and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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