Correlation Between EQ and Criteo Sa

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

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

Diversification Opportunities for EQ and Criteo Sa

0.0

Correlation Coefficient

EQ  Criteo Sa

Pay attention - limited upside

The 3 months correlation between EQ and Criteo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EQ Inc and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and EQ 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 EQ 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 EQ i.e., EQ and Criteo Sa go up and down completely randomly.

Pair Corralation between EQ and Criteo Sa

If you would invest (100.00) in EQ Inc on December 28, 2024 and sell it today you would earn a total of  100.00  from holding EQ Inc 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

EQ Inc  vs.  Criteo Sa

EQ Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days EQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EQ is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.

Pair Trading with EQ and Criteo Sa

The main advantage of trading using opposite EQ and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQ 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 EQ 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.