Correlation Between Kuaishou Technology and Outbrain
Can any of the company-specific risk be diversified away by investing in both Kuaishou Technology 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 Kuaishou Technology and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuaishou Technology and Outbrain, you can compare the effects of market volatilities on Kuaishou Technology 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 Kuaishou Technology with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuaishou Technology and Outbrain.
Diversification Opportunities for Kuaishou Technology and Outbrain
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kuaishou and Outbrain is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kuaishou Technology and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Kuaishou Technology 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 Kuaishou Technology 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 Kuaishou Technology i.e., Kuaishou Technology and Outbrain go up and down completely randomly.
Pair Corralation between Kuaishou Technology and Outbrain
Assuming the 90 days horizon Kuaishou Technology is expected to under-perform the Outbrain. In addition to that, Kuaishou Technology is 3.41 times more volatile than Outbrain. It trades about -0.17 of its total potential returns per unit of risk. Outbrain is currently generating about -0.35 per unit of volatility. If you would invest 760.00 in Outbrain on October 25, 2024 and sell it today you would lose (111.50) from holding Outbrain or give up 14.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Kuaishou Technology vs. Outbrain
Performance |
| Timeline |
| Kuaishou Technology |
| Outbrain |
Kuaishou Technology and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuaishou Technology and Outbrain
The main advantage of trading using opposite Kuaishou Technology and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuaishou Technology 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.| Kuaishou Technology vs. Tencent Holdings | Kuaishou Technology vs. DouYu International Holdings | Kuaishou Technology vs. Tencent Music Entertainment | Kuaishou Technology vs. Weibo Corp |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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