Correlation Between Outbrain and Perion Network
Can any of the company-specific risk be diversified away by investing in both Outbrain and Perion Network 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 Perion Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Perion Network, you can compare the effects of market volatilities on Outbrain and Perion Network 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 Perion Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Perion Network.
Diversification Opportunities for Outbrain and Perion Network
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Outbrain and Perion is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Perion Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perion Network 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 Perion Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perion Network has no effect on the direction of Outbrain i.e., Outbrain and Perion Network go up and down completely randomly.
Pair Corralation between Outbrain and Perion Network
Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.67 times less return on investment than Perion Network. In addition to that, Outbrain is 2.16 times more volatile than Perion Network. It trades about 0.06 of its total potential returns per unit of risk. Perion Network is currently generating about 0.23 per unit of volatility. If you would invest 887.00 in Perion Network on November 18, 2024 and sell it today you would earn a total of 87.00 from holding Perion Network or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. Perion Network
Performance |
| Timeline |
| Outbrain |
| Perion Network |
Outbrain and Perion Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Perion Network
The main advantage of trading using opposite Outbrain and Perion Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Perion Network 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 Perion Network will offset losses from the drop in Perion Network's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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