Correlation Between Nebius Group and Outbrain
Can any of the company-specific risk be diversified away by investing in both Nebius Group 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 Nebius Group and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebius Group NV and Outbrain, you can compare the effects of market volatilities on Nebius Group 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 Nebius Group with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebius Group and Outbrain.
Diversification Opportunities for Nebius Group and Outbrain
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nebius and Outbrain is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Nebius Group NV and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Nebius Group 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 Nebius Group NV 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 Nebius Group i.e., Nebius Group and Outbrain go up and down completely randomly.
Pair Corralation between Nebius Group and Outbrain
Given the investment horizon of 90 days Nebius Group NV is expected to generate 4.13 times more return on investment than Outbrain. However, Nebius Group is 4.13 times more volatile than Outbrain. It trades about 0.13 of its potential returns per unit of risk. Outbrain is currently generating about -0.31 per unit of risk. If you would invest 2,770 in Nebius Group NV on November 1, 2024 and sell it today you would earn a total of 410.00 from holding Nebius Group NV or generate 14.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebius Group NV vs. Outbrain
Performance |
| Timeline |
| Nebius Group NV |
| Outbrain |
Nebius Group and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebius Group and Outbrain
The main advantage of trading using opposite Nebius Group and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebius Group 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.| Nebius Group vs. Nicola Mining | Nebius Group vs. China Resources Beer | Nebius Group vs. Ambev SA ADR | Nebius Group vs. Suntory Beverage Food |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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