Correlation Between Outbrain and SPAR
Can any of the company-specific risk be diversified away by investing in both Outbrain and SPAR 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 SPAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and SPAR Group, you can compare the effects of market volatilities on Outbrain and SPAR 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 SPAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and SPAR.
Diversification Opportunities for Outbrain and SPAR
Excellent diversification
The 3 months correlation between Outbrain and SPAR is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and SPAR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPAR 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 SPAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPAR Group has no effect on the direction of Outbrain i.e., Outbrain and SPAR go up and down completely randomly.
Pair Corralation between Outbrain and SPAR
Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.66 times more return on investment than SPAR. However, Outbrain is 1.66 times more volatile than SPAR Group. It trades about 0.31 of its potential returns per unit of risk. SPAR Group is currently generating about -0.2 per unit of risk. If you would invest 439.00 in Outbrain on August 28, 2024 and sell it today you would earn a total of 98.00 from holding Outbrain or generate 22.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. SPAR Group
Performance |
| Timeline |
| Outbrain |
| SPAR Group |
Outbrain and SPAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and SPAR
The main advantage of trading using opposite Outbrain and SPAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, SPAR 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 SPAR will offset losses from the drop in SPAR's long position.The idea behind Outbrain and SPAR Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| SPAR vs. Mitie Group Plc | SPAR vs. Dexterra Group | SPAR vs. Wildpack Beverage | SPAR vs. Intertek Group Plc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |