Correlation Between Criteo Sa and Ziff Davis
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Ziff Davis 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 Ziff Davis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Ziff Davis, you can compare the effects of market volatilities on Criteo Sa and Ziff Davis 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 Ziff Davis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Ziff Davis.
Diversification Opportunities for Criteo Sa and Ziff Davis
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Criteo and Ziff is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Ziff Davis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziff Davis 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 Ziff Davis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziff Davis has no effect on the direction of Criteo Sa i.e., Criteo Sa and Ziff Davis go up and down completely randomly.
Pair Corralation between Criteo Sa and Ziff Davis
Given the investment horizon of 90 days Criteo Sa is expected to generate 1.01 times more return on investment than Ziff Davis. However, Criteo Sa is 1.01 times more volatile than Ziff Davis. It trades about 0.06 of its potential returns per unit of risk. Ziff Davis is currently generating about -0.02 per unit of risk. If you would invest 3,235 in Criteo Sa on August 27, 2024 and sell it today you would earn a total of 761.00 from holding Criteo Sa or generate 23.52% 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. Ziff Davis
Performance |
| Timeline |
| Criteo Sa |
| Ziff Davis |
Criteo Sa and Ziff Davis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Ziff Davis
The main advantage of trading using opposite Criteo Sa and Ziff Davis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Ziff Davis 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 Ziff Davis will offset losses from the drop in Ziff Davis' long position.| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa vs. Integral Ad Science |
| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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