Correlation Between Fiverr International and Outbrain
Can any of the company-specific risk be diversified away by investing in both Fiverr International and Outbrain 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 Fiverr International and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiverr International and Outbrain, you can compare the effects of market volatilities on Fiverr International and Outbrain 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 Fiverr International with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiverr International and Outbrain.
Diversification Opportunities for Fiverr International and Outbrain
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fiverr and Outbrain is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fiverr International and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Fiverr International 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 Fiverr International are associated (or correlated) with Outbrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outbrain has no effect on the direction of Fiverr International i.e., Fiverr International and Outbrain go up and down completely randomly.
Pair Corralation between Fiverr International and Outbrain
Given the investment horizon of 90 days Fiverr International is expected to generate 1.16 times more return on investment than Outbrain. However, Fiverr International is 1.16 times more volatile than Outbrain. It trades about -0.05 of its potential returns per unit of risk. Outbrain is currently generating about -0.29 per unit of risk. If you would invest 3,204 in Fiverr International on November 3, 2024 and sell it today you would lose (117.00) from holding Fiverr International or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiverr International vs. Outbrain
Performance |
| Timeline |
| Fiverr International |
| Outbrain |
Fiverr International and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiverr International and Outbrain
The main advantage of trading using opposite Fiverr International and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiverr International position performs unexpectedly, Outbrain 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 Outbrain will offset losses from the drop in Outbrain's long position.| Fiverr International vs. Snap Inc | Fiverr International vs. Twilio Inc | Fiverr International vs. Spotify Technology SA | Fiverr International vs. Baidu Inc |
| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
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 Stocks Directory module to find actively traded stocks across global markets.
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