Correlation Between Criteo Sa and Sonos
Can any of the company-specific risk be diversified away by investing in both Criteo Sa and Sonos 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 Sonos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Criteo Sa and Sonos Inc, you can compare the effects of market volatilities on Criteo Sa and Sonos 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 Sonos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Criteo Sa and Sonos.
Diversification Opportunities for Criteo Sa and Sonos
Excellent diversification
The 3 months correlation between Criteo and Sonos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Criteo Sa and Sonos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonos Inc 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 Sonos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonos Inc has no effect on the direction of Criteo Sa i.e., Criteo Sa and Sonos go up and down completely randomly.
Pair Corralation between Criteo Sa and Sonos
Given the investment horizon of 90 days Criteo Sa is expected to under-perform the Sonos. But the stock apears to be less risky and, when comparing its historical volatility, Criteo Sa is 1.21 times less risky than Sonos. The stock trades about -0.27 of its potential returns per unit of risk. The Sonos Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 921.00 in Sonos Inc on April 30, 2025 and sell it today you would earn a total of 223.00 from holding Sonos Inc or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Criteo Sa vs. Sonos Inc
Performance |
| Timeline |
| Criteo Sa |
| Sonos Inc |
Criteo Sa and Sonos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Criteo Sa and Sonos
The main advantage of trading using opposite Criteo Sa and Sonos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Criteo Sa position performs unexpectedly, Sonos 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 Sonos will offset losses from the drop in Sonos' long position.The idea behind Criteo Sa and Sonos Inc 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.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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