Correlation Between Integral and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Criteo Sa, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Criteo Sa.
Diversification Opportunities for Integral and Criteo Sa
Good diversification
The 3 months correlation between Integral and Criteo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Integral 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 Integral Ad Science 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 Integral i.e., Integral and Criteo Sa go up and down completely randomly.
Pair Corralation between Integral and Criteo Sa
Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.85 times more return on investment than Criteo Sa. However, Integral Ad Science is 1.17 times less risky than Criteo Sa. It trades about 0.09 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.03 per unit of risk. If you would invest 1,051 in Integral Ad Science on August 24, 2024 and sell it today you would earn a total of 69.00 from holding Integral Ad Science or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Criteo Sa
Performance |
| Timeline |
| Integral Ad Science |
| Criteo Sa |
Integral and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Criteo Sa
The main advantage of trading using opposite Integral and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.The idea behind Integral Ad Science and Criteo Sa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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