Correlation Between Outbrain and Globalstar
Can any of the company-specific risk be diversified away by investing in both Outbrain and Globalstar 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 Globalstar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Globalstar, you can compare the effects of market volatilities on Outbrain and Globalstar 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 Globalstar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Globalstar.
Diversification Opportunities for Outbrain and Globalstar
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Outbrain and Globalstar is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Globalstar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globalstar 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 Globalstar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globalstar has no effect on the direction of Outbrain i.e., Outbrain and Globalstar go up and down completely randomly.
Pair Corralation between Outbrain and Globalstar
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.51 times more return on investment than Globalstar. However, Outbrain is 1.94 times less risky than Globalstar. It trades about 0.18 of its potential returns per unit of risk. Globalstar is currently generating about 0.05 per unit of risk. If you would invest 440.00 in Outbrain on November 1, 2024 and sell it today you would earn a total of 169.00 from holding Outbrain or generate 38.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. Globalstar
Performance |
| Timeline |
| Outbrain |
| Globalstar |
Outbrain and Globalstar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Globalstar
The main advantage of trading using opposite Outbrain and Globalstar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Globalstar 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 Globalstar will offset losses from the drop in Globalstar's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Globalstar vs. Iridium Communications | Globalstar vs. Lumen Technologies | Globalstar vs. InterDigital | Globalstar vs. Cogent Communications Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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