Correlation Between Criteo Sa and Integral

Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Integral 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 Criteo Sa and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Criteo Sa and Integral Ad Science, you can compare the effects of market volatilities on Criteo Sa and Integral 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 Criteo Sa with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Integral.

Diversification Opportunities for Criteo Sa and Integral

0.67

Correlation Coefficient

Criteo Sa  Integral

Poor diversification

The 3 months correlation between Criteo and Integral is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Criteo Sa 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 Criteo Sa are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Criteo Sa i.e., Criteo Sa and Integral go up and down completely randomly.

Pair Corralation between Criteo Sa and Integral

Given the investment horizon of 90 days Criteo Sa is expected to generate 1.34 times more return on investment than Integral. However, Criteo Sa is 1.34 times more volatile than Integral Ad Science. It trades about -0.02 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.12 per unit of risk. If you would invest  3,927  in Criteo Sa on December 29, 2024 and sell it today you would lose (263.00) from holding Criteo Sa or give up 6.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Criteo Sa  vs.  Integral Ad Science

Criteo Sa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Criteo Sa has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Criteo Sa is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Integral Ad Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Criteo Sa and Integral

The main advantage of trading using opposite Criteo Sa and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.

The idea behind Criteo Sa and Integral Ad Science 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.