Correlation Between Outbrain and Spark Networks
Can any of the company-specific risk be diversified away by investing in both Outbrain and Spark Networks 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 Spark Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Spark Networks SE, you can compare the effects of market volatilities on Outbrain and Spark Networks 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 Spark Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Spark Networks.
Diversification Opportunities for Outbrain and Spark Networks
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outbrain and Spark is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Spark Networks SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark Networks SE 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 Spark Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark Networks SE has no effect on the direction of Outbrain i.e., Outbrain and Spark Networks go up and down completely randomly.
Pair Corralation between Outbrain and Spark Networks
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.15 times more return on investment than Spark Networks. However, Outbrain is 6.5 times less risky than Spark Networks. It trades about 0.03 of its potential returns per unit of risk. Spark Networks SE is currently generating about -0.1 per unit of risk. If you would invest 480.00 in Outbrain on August 31, 2024 and sell it today you would earn a total of 63.00 from holding Outbrain or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Outbrain vs. Spark Networks SE
Performance |
| Timeline |
| Outbrain |
| Spark Networks SE |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Outbrain and Spark Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Spark Networks
The main advantage of trading using opposite Outbrain and Spark Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Spark Networks 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 Spark Networks will offset losses from the drop in Spark Networks' long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Spark Networks vs. Locafy Limited | Spark Networks vs. Metalpha Technology Holding | Spark Networks vs. TuanChe ADR | Spark Networks vs. Thryv Holdings |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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