Correlation Between Outbrain and Thumzup Media
Can any of the company-specific risk be diversified away by investing in both Outbrain and Thumzup Media 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 Thumzup Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Outbrain and Thumzup Media, you can compare the effects of market volatilities on Outbrain and Thumzup Media 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 Thumzup Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Thumzup Media.
Diversification Opportunities for Outbrain and Thumzup Media
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Outbrain and Thumzup is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Thumzup Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thumzup Media 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 Thumzup Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thumzup Media has no effect on the direction of Outbrain i.e., Outbrain and Thumzup Media go up and down completely randomly.
Pair Corralation between Outbrain and Thumzup Media
Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.33 times more return on investment than Thumzup Media. However, Outbrain is 3.05 times less risky than Thumzup Media. It trades about 0.28 of its potential returns per unit of risk. Thumzup Media is currently generating about -0.17 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 81.00 from holding Outbrain or generate 18.45% 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. Thumzup Media
Performance |
| Timeline |
| Outbrain |
| Thumzup Media |
Outbrain and Thumzup Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Outbrain and Thumzup Media
The main advantage of trading using opposite Outbrain and Thumzup Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Thumzup Media 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 Thumzup Media will offset losses from the drop in Thumzup Media's long position.| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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