Correlation Between Outbrain and Comscore
Can any of the company-specific risk be diversified away by investing in both Outbrain and Comscore 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 Comscore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Comscore, you can compare the effects of market volatilities on Outbrain and Comscore 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 Comscore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Comscore.
Diversification Opportunities for Outbrain and Comscore
Poor diversification
The 3 months correlation between Outbrain and Comscore is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore 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 Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Outbrain i.e., Outbrain and Comscore go up and down completely randomly.
Pair Corralation between Outbrain and Comscore
Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.82 times less return on investment than Comscore. But when comparing it to its historical volatility, Outbrain is 3.07 times less risky than Comscore. It trades about 0.34 of its potential returns per unit of risk. Comscore is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 580.00 in Comscore on August 30, 2024 and sell it today you would earn a total of 245.00 from holding Comscore or generate 42.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Outbrain vs. Comscore
Performance |
| Timeline |
| Outbrain |
| Comscore |
Outbrain and Comscore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Comscore
The main advantage of trading using opposite Outbrain and Comscore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Comscore 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 Comscore will offset losses from the drop in Comscore's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Comscore vs. Cheetah Mobile | Comscore vs. PropertyGuru Group | Comscore vs. EverQuote Class A | Comscore vs. TechTarget |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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