Correlation Between Criteo Sa and Tremor International
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Tremor International 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 Tremor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Tremor International, you can compare the effects of market volatilities on Criteo Sa and Tremor International 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 Tremor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Tremor International.
Diversification Opportunities for Criteo Sa and Tremor International
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Criteo and Tremor is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Tremor International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremor International 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 Tremor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremor International has no effect on the direction of Criteo Sa i.e., Criteo Sa and Tremor International go up and down completely randomly.
Pair Corralation between Criteo Sa and Tremor International
Given the investment horizon of 90 days Criteo Sa is expected to generate 2.54 times less return on investment than Tremor International. But when comparing it to its historical volatility, Criteo Sa is 2.2 times less risky than Tremor International. It trades about 0.04 of its potential returns per unit of risk. Tremor International is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Tremor International on August 30, 2024 and sell it today you would earn a total of 199.00 from holding Tremor International or generate 66.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
Criteo Sa vs. Tremor International
Performance |
| Timeline |
| Criteo Sa |
| Tremor International |
Criteo Sa and Tremor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Tremor International
The main advantage of trading using opposite Criteo Sa and Tremor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Tremor International 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 Tremor International will offset losses from the drop in Tremor International's long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
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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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