Correlation Between Criteo Sa and EverQuote

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

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

Diversification Opportunities for Criteo Sa and EverQuote

-0.17

Correlation Coefficient

Criteo Sa  EverQuote

Good diversification

The 3 months correlation between Criteo and EverQuote is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and EverQuote Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverQuote Class A 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 EverQuote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverQuote Class A has no effect on the direction of Criteo Sa i.e., Criteo Sa and EverQuote go up and down completely randomly.

Pair Corralation between Criteo Sa and EverQuote

Given the investment horizon of 90 days Criteo Sa is expected to under-perform the EverQuote. But the stock apears to be less risky and, when comparing its historical volatility, Criteo Sa is 1.14 times less risky than EverQuote. The stock trades about -0.14 of its potential returns per unit of risk. The EverQuote Class A is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  2,671  in EverQuote Class A on May 2, 2025 and sell it today you would lose (242.00) from holding EverQuote Class A or give up 9.06% of portfolio value over 90 days.

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

Criteo Sa  vs.  EverQuote Class A

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

EverQuote Class A

Risk-Adjusted Performance

Very Weak

Over the last 90 days EverQuote Class A has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Criteo Sa and EverQuote

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

The idea behind Criteo Sa and EverQuote Class A 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.