Correlation Between Marchex and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Marchex 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 Marchex and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Criteo Sa, you can compare the effects of market volatilities on Marchex 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 Marchex with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Criteo Sa.
Diversification Opportunities for Marchex and Criteo Sa
Weak diversification
The 3 months correlation between Marchex and Criteo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Marchex 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 Marchex 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 Marchex i.e., Marchex and Criteo Sa go up and down completely randomly.
Pair Corralation between Marchex and Criteo Sa
Given the investment horizon of 90 days Marchex is expected to generate 1.36 times more return on investment than Criteo Sa. However, Marchex is 1.36 times more volatile than Criteo Sa. It trades about -0.04 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.29 per unit of risk. If you would invest 198.00 in Marchex on October 20, 2024 and sell it today you would lose (6.00) from holding Marchex or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Criteo Sa
Performance |
| Timeline |
| Marchex |
| Criteo Sa |
Marchex and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Criteo Sa
The main advantage of trading using opposite Marchex and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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