Correlation Between Fox Corp and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Fox Corp 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 Fox Corp and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fox Corp Class and Criteo Sa, you can compare the effects of market volatilities on Fox Corp 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 Fox Corp with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fox Corp and Criteo Sa.
Diversification Opportunities for Fox Corp and Criteo Sa
Excellent diversification
The 3 months correlation between Fox and Criteo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fox Corp Class and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Fox Corp 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 Fox Corp Class 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 Fox Corp i.e., Fox Corp and Criteo Sa go up and down completely randomly.
Pair Corralation between Fox Corp and Criteo Sa
Given the investment horizon of 90 days Fox Corp is expected to generate 1.68 times less return on investment than Criteo Sa. But when comparing it to its historical volatility, Fox Corp Class is 1.21 times less risky than Criteo Sa. It trades about 0.32 of its potential returns per unit of risk. Criteo Sa is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 3,344 in Criteo Sa on September 2, 2024 and sell it today you would earn a total of 734.00 from holding Criteo Sa or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fox Corp Class vs. Criteo Sa
Performance |
| Timeline |
| Fox Corp Class |
| Criteo Sa |
Fox Corp and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fox Corp and Criteo Sa
The main advantage of trading using opposite Fox Corp and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fox Corp 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.| Fox Corp vs. News Corp B | Fox Corp vs. News Corp A | Fox Corp vs. Live Nation Entertainment | Fox Corp vs. Paramount Global Class |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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