Correlation Between Outbrain and Bilibili
Can any of the company-specific risk be diversified away by investing in both Outbrain and Bilibili 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 Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Bilibili, you can compare the effects of market volatilities on Outbrain and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Bilibili.
Diversification Opportunities for Outbrain and Bilibili
Very good diversification
The 3 months correlation between Outbrain and Bilibili is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Outbrain i.e., Outbrain and Bilibili go up and down completely randomly.
Pair Corralation between Outbrain and Bilibili
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.78 times more return on investment than Bilibili. However, Outbrain is 1.29 times less risky than Bilibili. It trades about 0.14 of its potential returns per unit of risk. Bilibili is currently generating about -0.11 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 | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Outbrain vs. Bilibili
Performance |
| Timeline |
| Outbrain |
| Bilibili |
Outbrain and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Bilibili
The main advantage of trading using opposite Outbrain and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Bilibili vs. NetEase | Bilibili vs. Roblox Corp | Bilibili vs. Skillz Platform | Bilibili vs. Take Two Interactive Software |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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