Correlation Between Outbrain and Vivid Seats
Can any of the company-specific risk be diversified away by investing in both Outbrain and Vivid Seats 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 Vivid Seats into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Vivid Seats, you can compare the effects of market volatilities on Outbrain and Vivid Seats 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 Vivid Seats. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Vivid Seats.
Diversification Opportunities for Outbrain and Vivid Seats
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Outbrain and Vivid is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Vivid Seats in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivid Seats 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 Vivid Seats. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivid Seats has no effect on the direction of Outbrain i.e., Outbrain and Vivid Seats go up and down completely randomly.
Pair Corralation between Outbrain and Vivid Seats
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.79 times more return on investment than Vivid Seats. However, Outbrain is 1.26 times less risky than Vivid Seats. It trades about 0.34 of its potential returns per unit of risk. Vivid Seats is currently generating about -0.17 per unit of risk. If you would invest 432.00 in Outbrain on August 30, 2024 and sell it today you would earn a total of 105.00 from holding Outbrain or generate 24.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Outbrain vs. Vivid Seats
Performance |
| Timeline |
| Outbrain |
| Vivid Seats |
Outbrain and Vivid Seats Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Vivid Seats
The main advantage of trading using opposite Outbrain and Vivid Seats positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Vivid Seats 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 Vivid Seats will offset losses from the drop in Vivid Seats' long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
| Vivid Seats vs. Onfolio Holdings | Vivid Seats vs. EverQuote Class A | Vivid Seats vs. Asset Entities Class | Vivid Seats vs. MediaAlpha |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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