Correlation Between QMMM Holdings and Criteo Sa

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

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

Diversification Opportunities for QMMM Holdings and Criteo Sa

-0.5

Correlation Coefficient

QMMM Holdings  Criteo Sa

Very good diversification

The 3 months correlation between QMMM and Criteo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding QMMM Holdings Limited and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and QMMM Holdings 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 QMMM Holdings Limited 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 QMMM Holdings i.e., QMMM Holdings and Criteo Sa go up and down completely randomly.

Pair Corralation between QMMM Holdings and Criteo Sa

Given the investment horizon of 90 days QMMM Holdings Limited is expected to generate 6.07 times more return on investment than Criteo Sa. However, QMMM Holdings is 6.07 times more volatile than Criteo Sa. It trades about 0.01 of its potential returns per unit of risk. Criteo Sa is currently generating about 0.04 per unit of risk. If you would invest  407.00  in QMMM Holdings Limited on October 9, 2024 and sell it today you would lose (299.00) from holding QMMM Holdings Limited or give up 73.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	24.04%
Values	Daily Returns

QMMM Holdings Limited  vs.  Criteo Sa

QMMM Holdings Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QMMM Holdings Limited 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 primary indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

Pair Trading with QMMM Holdings and Criteo Sa

The main advantage of trading using opposite QMMM Holdings and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QMMM Holdings 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 QMMM Holdings Limited 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.