Correlation Between PropertyGuru and Outbrain
Can any of the company-specific risk be diversified away by investing in both PropertyGuru and Outbrain 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 PropertyGuru and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PropertyGuru Group and Outbrain, you can compare the effects of market volatilities on PropertyGuru and Outbrain 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 PropertyGuru with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and Outbrain.
Diversification Opportunities for PropertyGuru and Outbrain
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PropertyGuru and Outbrain is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and PropertyGuru 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 PropertyGuru Group are associated (or correlated) with Outbrain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outbrain has no effect on the direction of PropertyGuru i.e., PropertyGuru and Outbrain go up and down completely randomly.
Pair Corralation between PropertyGuru and Outbrain
Given the investment horizon of 90 days PropertyGuru is expected to generate 27.78 times less return on investment than Outbrain. But when comparing it to its historical volatility, PropertyGuru Group is 20.93 times less risky than Outbrain. It trades about 0.16 of its potential returns per unit of risk. Outbrain is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 439.00 in Outbrain on October 26, 2024 and sell it today you would earn a total of 210.00 from holding Outbrain or generate 47.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 59.32% |
| Values | Daily Returns |
PropertyGuru Group vs. Outbrain
Performance |
| Timeline |
| PropertyGuru Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Outbrain |
PropertyGuru and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PropertyGuru and Outbrain
The main advantage of trading using opposite PropertyGuru and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru position performs unexpectedly, Outbrain 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 Outbrain will offset losses from the drop in Outbrain's long position.| PropertyGuru vs. Comscore | PropertyGuru vs. Cheetah Mobile | PropertyGuru vs. EverQuote Class A | PropertyGuru vs. DouYu International Holdings |
| Outbrain vs. Perion Network | Outbrain vs. Taboola Ltd Warrant | Outbrain vs. Fiverr International | Outbrain vs. ANGI Homeservices |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |