Correlation Between VS Media and Criteo Sa

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

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

Diversification Opportunities for VS Media and Criteo Sa

0.81

Correlation Coefficient

VS Media  Criteo Sa

Very poor diversification

The 3 months correlation between VSME and Criteo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding VS Media Holdings and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and VS Media 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 VS Media 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 VS Media i.e., VS Media and Criteo Sa go up and down completely randomly.

Pair Corralation between VS Media and Criteo Sa

Given the investment horizon of 90 days VS Media Holdings is expected to generate 2.52 times more return on investment than Criteo Sa. However, VS Media is 2.52 times more volatile than Criteo Sa. It trades about -0.02 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.16 per unit of risk. If you would invest  106.00  in VS Media Holdings on February 27, 2025 and sell it today you would lose (31.00) from holding VS Media Holdings or give up 29.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

VS Media Holdings  vs.  Criteo Sa

VS Media Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days VS Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains 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 June 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with VS Media and Criteo Sa

The main advantage of trading using opposite VS Media and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VS Media 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 VS Media Holdings 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 Transaction History module to view history of all your transactions and understand their impact on performance.