Correlation Between Outbrain and Starbox Group
Can any of the company-specific risk be diversified away by investing in both Outbrain and Starbox Group 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 Starbox Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Starbox Group Holdings, you can compare the effects of market volatilities on Outbrain and Starbox Group 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 Starbox Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Starbox Group.
Diversification Opportunities for Outbrain and Starbox Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Outbrain and Starbox is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Starbox Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbox Group Holdings 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 Starbox Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbox Group Holdings has no effect on the direction of Outbrain i.e., Outbrain and Starbox Group go up and down completely randomly.
Pair Corralation between Outbrain and Starbox Group
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.37 times more return on investment than Starbox Group. However, Outbrain is 2.7 times less risky than Starbox Group. It trades about 0.08 of its potential returns per unit of risk. Starbox Group Holdings is currently generating about -0.06 per unit of risk. If you would invest 437.00 in Outbrain on September 3, 2024 and sell it today you would earn a total of 106.00 from holding Outbrain or generate 24.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Outbrain vs. Starbox Group Holdings
Performance |
| Timeline |
| Outbrain |
| Starbox Group Holdings |
Outbrain and Starbox Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Starbox Group
The main advantage of trading using opposite Outbrain and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Starbox Group 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 Starbox Group will offset losses from the drop in Starbox Group's long position.The idea behind Outbrain and Starbox Group Holdings 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.| Starbox Group vs. Onfolio Holdings | Starbox Group vs. MediaAlpha | Starbox Group vs. Asset Entities Class | Starbox Group vs. Yelp Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets |