Correlation Between Emerald Expositions and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Emerald Expositions 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 Emerald Expositions and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerald Expositions Events and Criteo Sa, you can compare the effects of market volatilities on Emerald Expositions 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 Emerald Expositions with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerald Expositions and Criteo Sa.
Diversification Opportunities for Emerald Expositions and Criteo Sa
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerald and Criteo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Emerald Expositions Events and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Emerald Expositions 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 Emerald Expositions Events 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 Emerald Expositions i.e., Emerald Expositions and Criteo Sa go up and down completely randomly.
Pair Corralation between Emerald Expositions and Criteo Sa
Considering the 90-day investment horizon Emerald Expositions is expected to generate 2.15 times less return on investment than Criteo Sa. In addition to that, Emerald Expositions is 1.45 times more volatile than Criteo Sa. It trades about 0.06 of its total potential returns per unit of risk. Criteo Sa is currently generating about 0.19 per unit of volatility. If you would invest 2,353 in Criteo Sa on February 2, 2024 and sell it today you would earn a total of 1,371 from holding Criteo Sa or generate 58.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Emerald Expositions Events vs. Criteo Sa
Performance |
Timeline |
Emerald Expositions |
Criteo Sa |
Emerald Expositions and Criteo Sa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Emerald Expositions and Criteo Sa
The main advantage of trading using opposite Emerald Expositions and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerald Expositions 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.Emerald Expositions vs. Dolphin Entertainment | Emerald Expositions vs. Beyond Commerce | Emerald Expositions vs. MGO Global Common | Emerald Expositions vs. Glory Star New |
Criteo Sa vs. Dolphin Entertainment | Criteo Sa vs. Beyond Commerce | Criteo Sa vs. MGO Global Common | Criteo Sa vs. Glory Star New |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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