Correlation Between Outbrain and High Roller
Can any of the company-specific risk be diversified away by investing in both Outbrain and High Roller 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 High Roller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and High Roller Technologies,, you can compare the effects of market volatilities on Outbrain and High Roller 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 High Roller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and High Roller.
Diversification Opportunities for Outbrain and High Roller
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Outbrain and High is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and High Roller Technologies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Roller Technologies, 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 High Roller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Roller Technologies, has no effect on the direction of Outbrain i.e., Outbrain and High Roller go up and down completely randomly.
Pair Corralation between Outbrain and High Roller
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.42 times more return on investment than High Roller. However, Outbrain is 2.38 times less risky than High Roller. It trades about 0.5 of its potential returns per unit of risk. High Roller Technologies, is currently generating about -0.05 per unit of risk. If you would invest 427.00 in Outbrain on September 4, 2024 and sell it today you would earn a total of 169.00 from holding Outbrain or generate 39.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. High Roller Technologies,
Performance |
| Timeline |
| Outbrain |
| High Roller Technologies, |
Outbrain and High Roller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and High Roller
The main advantage of trading using opposite Outbrain and High Roller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, High Roller 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 High Roller will offset losses from the drop in High Roller's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| High Roller vs. Rave Restaurant Group | High Roller vs. Kura Sushi USA | High Roller vs. Highway Holdings Limited | High Roller vs. Yum Brands |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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