Correlation Between Fluent and Criteo Sa

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

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

Diversification Opportunities for Fluent and Criteo Sa

0.65

Correlation Coefficient

Fluent  Criteo Sa

Poor diversification

The 3 months correlation between Fluent and Criteo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Fluent 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 Fluent 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 Fluent i.e., Fluent and Criteo Sa go up and down completely randomly.

Pair Corralation between Fluent and Criteo Sa

Given the investment horizon of 90 days Fluent Inc is expected to under-perform the Criteo Sa. In addition to that, Fluent is 1.21 times more volatile than Criteo Sa. It trades about -0.05 of its total potential returns per unit of risk. Criteo Sa is currently generating about -0.04 per unit of volatility. If you would invest  3,927  in Criteo Sa on December 30, 2024 and sell it today you would lose (425.00) from holding Criteo Sa or give up 10.82% of portfolio value over 90 days.

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

Fluent Inc  vs.  Criteo Sa

Fluent Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Fluent and Criteo Sa

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

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.