Correlation Between Tremor Video and Criteo Sa

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

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

Diversification Opportunities for Tremor Video and Criteo Sa

0.0

Correlation Coefficient

Tremor Video  Criteo Sa

Pay attention - limited upside

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

Pair Corralation between Tremor Video and Criteo Sa

If you would invest  3,766  in Criteo Sa on December 5, 2024 and sell it today you would lose (31.00) from holding Criteo Sa or give up 0.82% of portfolio value over 90 days.

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

Tremor Video  vs.  Criteo Sa

Tremor Video

Risk-Adjusted Performance

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.

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 Tremor Video and Criteo Sa

The main advantage of trading using opposite Tremor Video and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tremor Video 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 Tremor Video 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.