Correlation Between AdTheorent Holding and Criteo Sa

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

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

Diversification Opportunities for AdTheorent Holding and Criteo Sa

0.0

Correlation Coefficient

AdTheorent Holding  Criteo Sa

Pay attention - limited upside

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

Pair Corralation between AdTheorent Holding and Criteo Sa

If you would invest (100.00) in AdTheorent Holding on January 24, 2025 and sell it today you would earn a total of  100.00  from holding AdTheorent Holding or generate -100.0% return on investment over 90 days.

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

AdTheorent Holding  vs.  Criteo Sa

AdTheorent Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days AdTheorent Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, AdTheorent Holding is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 uncertain 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 AdTheorent Holding and Criteo Sa

The main advantage of trading using opposite AdTheorent Holding and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdTheorent Holding 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 AdTheorent Holding 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.