Correlation Between Outbrain and PropertyGuru
Can any of the company-specific risk be diversified away by investing in both Outbrain and PropertyGuru 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 PropertyGuru into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and PropertyGuru Group, you can compare the effects of market volatilities on Outbrain and PropertyGuru 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 PropertyGuru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and PropertyGuru.
Diversification Opportunities for Outbrain and PropertyGuru
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Outbrain and PropertyGuru is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and PropertyGuru Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PropertyGuru Group 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 PropertyGuru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PropertyGuru Group has no effect on the direction of Outbrain i.e., Outbrain and PropertyGuru go up and down completely randomly.
Pair Corralation between Outbrain and PropertyGuru
Allowing for the 90-day total investment horizon Outbrain is expected to generate 20.93 times more return on investment than PropertyGuru. However, Outbrain is 20.93 times more volatile than PropertyGuru Group. It trades about 0.22 of its potential returns per unit of risk. PropertyGuru Group is currently generating about 0.16 per unit of risk. If you would invest 439.00 in Outbrain on October 26, 2024 and sell it today you would earn a total of 210.00 from holding Outbrain or generate 47.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.32% |
| Values | Daily Returns |
Outbrain vs. PropertyGuru Group
Performance |
| Timeline |
| Outbrain |
| PropertyGuru Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Outbrain and PropertyGuru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and PropertyGuru
The main advantage of trading using opposite Outbrain and PropertyGuru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, PropertyGuru 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 PropertyGuru will offset losses from the drop in PropertyGuru's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International 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 CEOs Directory module to screen CEOs from public companies around the world.
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