Correlation Between Criteo Sa and Tremor Video

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

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

Diversification Opportunities for Criteo Sa and Tremor Video

-0.25

Correlation Coefficient

Criteo Sa  Tremor Video

Very good diversification

The 3 months correlation between Criteo and Tremor is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Tremor Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tremor Video 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 Tremor Video. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tremor Video has no effect on the direction of Criteo Sa i.e., Criteo Sa and Tremor Video go up and down completely randomly.

Pair Corralation between Criteo Sa and Tremor Video

If you would invest  4,235  in Criteo Sa on September 18, 2024 and sell it today you would earn a total of  5.00  from holding Criteo Sa or generate 0.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Criteo Sa  vs.  Tremor Video

Criteo Sa

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Criteo Sa are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Tremor Video

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tremor Video has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Tremor Video is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Criteo Sa and Tremor Video

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

The idea behind Criteo Sa and Tremor Video 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.