Correlation Between IHeartMedia and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both IHeartMedia 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 IHeartMedia and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iHeartMedia Class A and Criteo Sa, you can compare the effects of market volatilities on IHeartMedia 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 IHeartMedia with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHeartMedia and Criteo Sa.
Diversification Opportunities for IHeartMedia and Criteo Sa
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IHeartMedia and Criteo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding iHeartMedia Class A and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and IHeartMedia 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 iHeartMedia Class A 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 IHeartMedia i.e., IHeartMedia and Criteo Sa go up and down completely randomly.
Pair Corralation between IHeartMedia and Criteo Sa
Given the investment horizon of 90 days iHeartMedia Class A is expected to generate 1.43 times more return on investment than Criteo Sa. However, IHeartMedia is 1.43 times more volatile than Criteo Sa. It trades about 0.16 of its potential returns per unit of risk. Criteo Sa is currently generating about 0.01 per unit of risk. If you would invest 189.00 in iHeartMedia Class A on August 28, 2024 and sell it today you would earn a total of 41.00 from holding iHeartMedia Class A or generate 21.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iHeartMedia Class A vs. Criteo Sa
Performance |
| Timeline |
| iHeartMedia Class |
| Criteo Sa |
IHeartMedia and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHeartMedia and Criteo Sa
The main advantage of trading using opposite IHeartMedia and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHeartMedia 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.| IHeartMedia vs. Beasley Broadcast Group | IHeartMedia vs. Saga Communications | IHeartMedia vs. E W Scripps | IHeartMedia vs. Gray Television |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |