Correlation Between Lee Enterprises and Criteo Sa

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

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

Diversification Opportunities for Lee Enterprises and Criteo Sa

0.65

Correlation Coefficient

Lee Enterprises  Criteo Sa

Poor diversification

The 3 months correlation between Lee and Criteo is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lee Enterprises Incorporated and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Lee Enterprises 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 Lee Enterprises Incorporated 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 Lee Enterprises i.e., Lee Enterprises and Criteo Sa go up and down completely randomly.

Pair Corralation between Lee Enterprises and Criteo Sa

Considering the 90-day investment horizon Lee Enterprises Incorporated is expected to generate 1.05 times more return on investment than Criteo Sa. However, Lee Enterprises is 1.05 times more volatile than Criteo Sa. It trades about -0.11 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.16 per unit of risk. If you would invest  871.00  in Lee Enterprises Incorporated on March 2, 2025 and sell it today you would lose (222.00) from holding Lee Enterprises Incorporated or give up 25.49% of portfolio value over 90 days.

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

Lee Enterprises Incorporated  vs.  Criteo Sa

Lee Enterprises

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lee Enterprises Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in July 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 July 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Lee Enterprises and Criteo Sa

The main advantage of trading using opposite Lee Enterprises and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Enterprises 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 Lee Enterprises Incorporated 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.