Correlation Between Outbrain and BYD Company
Can any of the company-specific risk be diversified away by investing in both Outbrain and BYD Company 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 BYD Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and BYD Company Limited, you can compare the effects of market volatilities on Outbrain and BYD Company 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 BYD Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and BYD Company.
Diversification Opportunities for Outbrain and BYD Company
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Outbrain and BYD is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and BYD Company Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BYD Limited 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 BYD Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BYD Limited has no effect on the direction of Outbrain i.e., Outbrain and BYD Company go up and down completely randomly.
Pair Corralation between Outbrain and BYD Company
Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.62 times less return on investment than BYD Company. In addition to that, Outbrain is 1.25 times more volatile than BYD Company Limited. It trades about 0.03 of its total potential returns per unit of risk. BYD Company Limited is currently generating about 0.06 per unit of volatility. If you would invest 2,731 in BYD Company Limited on November 26, 2024 and sell it today you would earn a total of 2,185 from holding BYD Company Limited or generate 80.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Outbrain vs. BYD Company Limited
Performance |
Timeline |
Outbrain |
BYD Limited |
Outbrain and BYD Company Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Outbrain and BYD Company
The main advantage of trading using opposite Outbrain and BYD Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, BYD Company 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 BYD Company will offset losses from the drop in BYD Company's long position.Outbrain vs. Perion Network | ||
Outbrain vs. Taboola Ltd Warrant | ||
Outbrain vs. Fiverr International | ||
Outbrain vs. ANGI Homeservices |
BYD Company vs. Li Auto | ||
BYD Company vs. Xpeng Inc | ||
BYD Company vs. Rivian Automotive | ||
BYD Company vs. Nio Class A |
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.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |