Correlation Between QuinStreet and Criteo Sa

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

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

Diversification Opportunities for QuinStreet and Criteo Sa

0.9

Correlation Coefficient

QuinStreet  Criteo Sa

Almost no diversification

The 3 months correlation between QuinStreet and Criteo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding QuinStreet and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and QuinStreet 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 QuinStreet 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 QuinStreet i.e., QuinStreet and Criteo Sa go up and down completely randomly.

Pair Corralation between QuinStreet and Criteo Sa

Given the investment horizon of 90 days QuinStreet is expected to generate 1.0 times more return on investment than Criteo Sa. However, QuinStreet is 1.0 times less risky than Criteo Sa. It trades about -0.18 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.18 per unit of risk. If you would invest  2,305  in QuinStreet on February 8, 2025 and sell it today you would lose (819.00) from holding QuinStreet or give up 35.53% of portfolio value over 90 days.

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

QuinStreet  vs.  Criteo Sa

QuinStreet

Risk-Adjusted Performance

Very Weak

Over the last 90 days QuinStreet 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 basic indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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.

Pair Trading with QuinStreet and Criteo Sa

The main advantage of trading using opposite QuinStreet and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QuinStreet 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 QuinStreet 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.