Correlation Between Entravision Communications and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Entravision Communications and Criteo Sa 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 Entravision Communications and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entravision Communications and Criteo Sa, you can compare the effects of market volatilities on Entravision Communications and Criteo Sa 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 Entravision Communications with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entravision Communications and Criteo Sa.
Diversification Opportunities for Entravision Communications and Criteo Sa
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Entravision and Criteo is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Entravision Communications and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Entravision Communications 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 Entravision Communications are associated (or correlated) with Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Entravision Communications i.e., Entravision Communications and Criteo Sa go up and down completely randomly.
Pair Corralation between Entravision Communications and Criteo Sa
Considering the 90-day investment horizon Entravision Communications is expected to generate 0.7 times more return on investment than Criteo Sa. However, Entravision Communications is 1.43 times less risky than Criteo Sa. It trades about 0.16 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.03 per unit of risk. If you would invest 221.00 in Entravision Communications on August 24, 2024 and sell it today you would earn a total of 26.00 from holding Entravision Communications or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entravision Communications vs. Criteo Sa
Performance |
| Timeline |
| Entravision Communications |
| Criteo Sa |
Entravision Communications and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entravision Communications and Criteo Sa
The main advantage of trading using opposite Entravision Communications and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entravision Communications position performs unexpectedly, Criteo Sa 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 Criteo Sa will offset losses from the drop in Criteo Sa's long position.| Entravision Communications vs. Marchex | Entravision Communications vs. Direct Digital Holdings | Entravision Communications vs. Cimpress NV | Entravision Communications vs. Townsquare Media |
| Criteo Sa vs. Deluxe | Criteo Sa vs. Emerald Expositions Events | Criteo Sa vs. Marchex | Criteo Sa 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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