Correlation Between Criteo Sa and Cardlytics

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

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

Diversification Opportunities for Criteo Sa and Cardlytics

0.81

Correlation Coefficient

Criteo Sa  Cardlytics

Very poor diversification

The 3 months correlation between Criteo and Cardlytics is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics and Criteo Sa 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 Criteo Sa are associated (or correlated) with Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of Criteo Sa i.e., Criteo Sa and Cardlytics go up and down completely randomly.

Pair Corralation between Criteo Sa and Cardlytics

Given the investment horizon of 90 days Criteo Sa is expected to under-perform the Cardlytics. But the stock apears to be less risky and, when comparing its historical volatility, Criteo Sa is 1.94 times less risky than Cardlytics. The stock trades about -0.02 of its potential returns per unit of risk. The Cardlytics is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  150.00  in Cardlytics on February 15, 2025 and sell it today you would earn a total of  55.00  from holding Cardlytics or generate 36.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Criteo Sa  vs.  Cardlytics

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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Cardlytics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cardlytics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in June 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Criteo Sa and Cardlytics

The main advantage of trading using opposite Criteo Sa and Cardlytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Cardlytics 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 Cardlytics will offset losses from the drop in Cardlytics' long position.

The idea behind Criteo Sa and Cardlytics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.