Correlation Between Outbrain and Taboola

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Outbrain and Taboola 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 Taboola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Taboola Ltd Warrant, you can compare the effects of market volatilities on Outbrain and Taboola 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 Taboola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Taboola.

Diversification Opportunities for Outbrain and Taboola

OutbrainTaboolaDiversified AwayOutbrainTaboolaDiversified Away100%
0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Outbrain and Taboola is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Taboola Ltd Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola Warrant 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 Taboola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taboola Warrant has no effect on the direction of Outbrain i.e., Outbrain and Taboola go up and down completely randomly.

Pair Corralation between Outbrain and Taboola

Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.59 times more return on investment than Taboola. However, Outbrain is 1.68 times less risky than Taboola. It trades about -0.01 of its potential returns per unit of risk. Taboola Ltd Warrant is currently generating about -0.03 per unit of risk. If you would invest  612.00  in Outbrain on November 27, 2024 and sell it today you would lose (21.00) from holding Outbrain or give up 3.43% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Outbrain  vs.  Taboola Ltd Warrant

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100
JavaScript chart by amCharts 3.21.15OB TBLAW
       Timeline  
Outbrain 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Outbrain are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, Outbrain sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb55.566.577.5
Taboola Warrant 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Taboola Ltd Warrant are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Taboola showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.20.250.30.350.40.450.50.55

Outbrain and Taboola Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.71-8.77-5.83-2.890.02.976.059.1312.215.28 0.0050.0100.0150.0200.025
JavaScript chart by amCharts 3.21.15OB TBLAW
       Returns  

Pair Trading with Outbrain and Taboola

The main advantage of trading using opposite Outbrain and Taboola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Taboola 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 Taboola will offset losses from the drop in Taboola's long position.
The idea behind Outbrain and Taboola Ltd Warrant 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.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites