Correlation Between Outbrain and Anterix
Can any of the company-specific risk be diversified away by investing in both Outbrain and Anterix 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 Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Anterix, you can compare the effects of market volatilities on Outbrain and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Anterix.
Diversification Opportunities for Outbrain and Anterix
Excellent diversification
The 3 months correlation between Outbrain and Anterix is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Outbrain i.e., Outbrain and Anterix go up and down completely randomly.
Pair Corralation between Outbrain and Anterix
Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.51 times more return on investment than Anterix. However, Outbrain is 1.51 times more volatile than Anterix. It trades about 0.14 of its potential returns per unit of risk. Anterix is currently generating about -0.05 per unit of risk. If you would invest 666.00 in Outbrain on November 9, 2024 and sell it today you would earn a total of 74.00 from holding Outbrain or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. Anterix
Performance |
| Timeline |
| Outbrain |
| Anterix |
Outbrain and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Anterix
The main advantage of trading using opposite Outbrain and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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