Correlation Between Stagwell and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Stagwell 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 Stagwell and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Criteo Sa, you can compare the effects of market volatilities on Stagwell 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 Stagwell with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Criteo Sa.
Diversification Opportunities for Stagwell and Criteo Sa
Good diversification
The 3 months correlation between Stagwell and Criteo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Stagwell 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 Stagwell 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 Stagwell i.e., Stagwell and Criteo Sa go up and down completely randomly.
Pair Corralation between Stagwell and Criteo Sa
Given the investment horizon of 90 days Stagwell is expected to generate 0.68 times more return on investment than Criteo Sa. However, Stagwell is 1.48 times less risky than Criteo Sa. It trades about 0.06 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.08 per unit of risk. If you would invest 721.00 in Stagwell on August 26, 2024 and sell it today you would earn a total of 61.00 from holding Stagwell or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. Criteo Sa
Performance |
| Timeline |
| Stagwell |
| Criteo Sa |
Stagwell and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Criteo Sa
The main advantage of trading using opposite Stagwell and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell 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.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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