Correlation Between Criteo Sa and Quotient Technology

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

By analyzing existing cross correlation between Criteo Sa and Quotient Technology, you can compare the effects of market volatilities on Criteo Sa and Quotient Technology 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 Quotient Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Quotient Technology.

Diversification Opportunities for Criteo Sa and Quotient Technology

0.0

Correlation Coefficient

Criteo Sa  Quotient Technology

Pay attention - limited upside

The 3 months correlation between Criteo and Quotient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Quotient Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quotient Technology 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 Quotient Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quotient Technology has no effect on the direction of Criteo Sa i.e., Criteo Sa and Quotient Technology go up and down completely randomly.

Pair Corralation between Criteo Sa and Quotient Technology

If you would invest (100.00) in Quotient Technology on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Quotient Technology or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Criteo Sa  vs.  Quotient Technology

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.

Quotient Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Quotient Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Quotient Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Criteo Sa and Quotient Technology

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

The idea behind Criteo Sa and Quotient Technology 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.