Correlation Between Outbrain and Getty Images
Can any of the company-specific risk be diversified away by investing in both Outbrain and Getty Images 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 Getty Images into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Getty Images Holdings, you can compare the effects of market volatilities on Outbrain and Getty Images 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 Getty Images. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Getty Images.
Diversification Opportunities for Outbrain and Getty Images
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Outbrain and Getty is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Getty Images Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Images Holdings 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 Getty Images. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Images Holdings has no effect on the direction of Outbrain i.e., Outbrain and Getty Images go up and down completely randomly.
Pair Corralation between Outbrain and Getty Images
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.57 times more return on investment than Getty Images. However, Outbrain is 1.77 times less risky than Getty Images. It trades about 0.28 of its potential returns per unit of risk. Getty Images Holdings is currently generating about -0.25 per unit of risk. If you would invest 439.00 in Outbrain on August 28, 2024 and sell it today you would earn a total of 81.00 from holding Outbrain or generate 18.45% 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. Getty Images Holdings
Performance |
| Timeline |
| Outbrain |
| Getty Images Holdings |
Outbrain and Getty Images Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Getty Images
The main advantage of trading using opposite Outbrain and Getty Images positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Getty Images 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 Getty Images will offset losses from the drop in Getty Images' long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Getty Images vs. Twilio Inc | Getty Images vs. Baidu Inc | Getty Images vs. Snap Inc | Getty Images vs. ANGI Homeservices |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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