Correlation Between Alarm Holdings and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Alarm 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 Alarm 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 Alarm Holdings and Criteo Sa, you can compare the effects of market volatilities on Alarm 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 Alarm Holdings with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarm Holdings and Criteo Sa.
Diversification Opportunities for Alarm Holdings and Criteo Sa
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alarm and Criteo is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alarm Holdings and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Alarm 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 Alarm Holdings 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 Alarm Holdings i.e., Alarm Holdings and Criteo Sa go up and down completely randomly.
Pair Corralation between Alarm Holdings and Criteo Sa
Given the investment horizon of 90 days Alarm Holdings is expected to generate 0.69 times more return on investment than Criteo Sa. However, Alarm Holdings is 1.45 times less risky than Criteo Sa. It trades about 0.06 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.25 per unit of risk. If you would invest 5,254 in Alarm Holdings on April 24, 2025 and sell it today you would earn a total of 305.00 from holding Alarm Holdings or generate 5.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Alarm Holdings vs. Criteo Sa
Performance |
Timeline |
Alarm Holdings |
Criteo Sa |
Alarm Holdings and Criteo Sa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alarm Holdings and Criteo Sa
The main advantage of trading using opposite Alarm Holdings and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarm 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.Alarm Holdings vs. Alkami Technology | Alarm Holdings vs. ADEIA P | Alarm Holdings vs. Cerence | Alarm Holdings vs. Appfolio |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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