Correlation Between Dow Jones and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Criteo Sa, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Criteo Sa.
Diversification Opportunities for Dow Jones and Criteo Sa
Excellent diversification
The 3 months correlation between Dow and Criteo is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa and Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Criteo Sa go up and down completely randomly.
Pair Corralation between Dow Jones and Criteo Sa
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.35 times more return on investment than Criteo Sa. However, Dow Jones Industrial is 2.89 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 -0.03 per unit of risk. If you would invest 4,209,870 in Dow Jones Industrial on May 28, 2025 and sell it today you would earn a total of 318,377 from holding Dow Jones Industrial or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dow Jones Industrial vs. Criteo Sa
Performance |
| Timeline |
Dow Jones and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Criteo Sa
Pair trading matchups for Criteo Sa
Pair Trading with Dow Jones and Criteo Sa
The main advantage of trading using opposite Dow Jones and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. United Airlines Holdings | Dow Jones vs. American Airlines Group | Dow Jones vs. Assurant | Dow Jones vs. Delta Air Lines |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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