Correlation Between Clear Channel and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Clear Channel 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 Clear Channel and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Channel Outdoor and Criteo Sa, you can compare the effects of market volatilities on Clear Channel 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 Clear Channel with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Channel and Criteo Sa.
Diversification Opportunities for Clear Channel and Criteo Sa
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clear and Criteo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Clear Channel 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 Clear Channel Outdoor 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 Clear Channel i.e., Clear Channel and Criteo Sa go up and down completely randomly.
Pair Corralation between Clear Channel and Criteo Sa
Considering the 90-day investment horizon Clear Channel Outdoor is expected to generate 1.22 times more return on investment than Criteo Sa. However, Clear Channel is 1.22 times more volatile than Criteo Sa. It trades about 0.13 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.11 per unit of risk. If you would invest 110.00 in Clear Channel Outdoor on April 7, 2025 and sell it today you would earn a total of 14.00 from holding Clear Channel Outdoor or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Channel Outdoor vs. Criteo Sa
Performance |
| Timeline |
| Clear Channel Outdoor |
| Criteo Sa |
Clear Channel and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Channel and Criteo Sa
The main advantage of trading using opposite Clear Channel and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel 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.| Clear Channel vs. Perseus Mining Limited | Clear Channel vs. Barrick Mining | Clear Channel vs. LG Display Co | Clear Channel vs. Goldrich Mining Co |
Check out your portfolio center.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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