Correlation Between Outbrain and Aston Martin
Can any of the company-specific risk be diversified away by investing in both Outbrain and Aston Martin 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 Outbrain and Aston Martin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Aston Martin Lagonda, you can compare the effects of market volatilities on Outbrain and Aston Martin 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 Outbrain with a short position of Aston Martin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Aston Martin.
Diversification Opportunities for Outbrain and Aston Martin
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outbrain and Aston is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Aston Martin Lagonda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aston Martin Lagonda and Outbrain 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 Outbrain are associated (or correlated) with Aston Martin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aston Martin Lagonda has no effect on the direction of Outbrain i.e., Outbrain and Aston Martin go up and down completely randomly.
Pair Corralation between Outbrain and Aston Martin
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.56 times more return on investment than Aston Martin. However, Outbrain is 1.78 times less risky than Aston Martin. It trades about 0.1 of its potential returns per unit of risk. Aston Martin Lagonda is currently generating about -0.02 per unit of risk. If you would invest 394.00 in Outbrain on November 9, 2024 and sell it today you would earn a total of 346.00 from holding Outbrain or generate 87.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Outbrain vs. Aston Martin Lagonda
Performance |
| Timeline |
| Outbrain |
| Aston Martin Lagonda |
Outbrain and Aston Martin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Aston Martin
The main advantage of trading using opposite Outbrain and Aston Martin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Aston Martin 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 Aston Martin will offset losses from the drop in Aston Martin's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Aston Martin vs. Polestar Automotive Holding | Aston Martin vs. Geely Automobile Holdings | Aston Martin vs. Mercedes Benz Group AG | Aston Martin vs. Porsche Automobile Holding |
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.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |