Correlation Between ATT and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Criteo Sa, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Criteo Sa.
Diversification Opportunities for ATT and Criteo Sa
Pay attention - limited upside
The 3 months correlation between ATT and Criteo is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and ATT 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 ATT Inc 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 ATT i.e., ATT and Criteo Sa go up and down completely randomly.
Pair Corralation between ATT and Criteo Sa
Taking into account the 90-day investment horizon ATT Inc is expected to generate 0.24 times more return on investment than Criteo Sa. However, ATT Inc is 4.2 times less risky than Criteo Sa. It trades about 0.12 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.03 per unit of risk. If you would invest 2,249 in ATT Inc on August 24, 2024 and sell it today you would earn a total of 70.50 from holding ATT Inc or generate 3.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Criteo Sa
Performance |
| Timeline |
| ATT Inc |
| Criteo Sa |
ATT and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Criteo Sa
The main advantage of trading using opposite ATT and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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 ATT Inc 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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