Correlation Between IClick Interactive and Criteo Sa

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

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

Diversification Opportunities for IClick Interactive and Criteo Sa

-0.8

Correlation Coefficient

IClick Interactive  Criteo Sa

Pay attention - limited upside

The 3 months correlation between IClick and Criteo is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding iClick Interactive Asia and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and IClick Interactive 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 iClick Interactive Asia 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 IClick Interactive i.e., IClick Interactive and Criteo Sa go up and down completely randomly.

Pair Corralation between IClick Interactive and Criteo Sa

Given the investment horizon of 90 days iClick Interactive Asia is expected to under-perform the Criteo Sa. In addition to that, IClick Interactive is 1.19 times more volatile than Criteo Sa. It trades about -0.01 of its total potential returns per unit of risk. Criteo Sa is currently generating about 0.31 per unit of volatility. If you would invest  3,515  in Criteo Sa on March 2, 2024 and sell it today you would earn a total of  421.00  from holding Criteo Sa or generate 11.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

iClick Interactive Asia  vs.  Criteo Sa

iClick Interactive Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iClick Interactive Asia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in July 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Criteo Sa

Risk-Adjusted Performance

14 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Criteo Sa are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Criteo Sa displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IClick Interactive and Criteo Sa

The main advantage of trading using opposite IClick Interactive and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IClick Interactive 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 iClick Interactive Asia 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.