Correlation Between Sabio Holdings and Outbrain
Can any of the company-specific risk be diversified away by investing in both Sabio Holdings 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 Sabio Holdings and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabio Holdings and Outbrain, you can compare the effects of market volatilities on Sabio Holdings 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 Sabio Holdings with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabio Holdings and Outbrain.
Diversification Opportunities for Sabio Holdings and Outbrain
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sabio and Outbrain is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sabio Holdings and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Sabio Holdings 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 Sabio Holdings 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 Sabio Holdings i.e., Sabio Holdings and Outbrain go up and down completely randomly.
Pair Corralation between Sabio Holdings and Outbrain
Assuming the 90 days horizon Sabio Holdings is expected to generate 1.57 times less return on investment than Outbrain. In addition to that, Sabio Holdings is 2.65 times more volatile than Outbrain. It trades about 0.07 of its total potential returns per unit of risk. Outbrain is currently generating about 0.28 per unit of volatility. If you would invest 439.00 in Outbrain on August 27, 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 |
Sabio Holdings vs. Outbrain
Performance |
| Timeline |
| Sabio Holdings |
| Outbrain |
Sabio Holdings and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabio Holdings and Outbrain
The main advantage of trading using opposite Sabio Holdings and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabio Holdings 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.| Sabio Holdings vs. Trivago NV | Sabio Holdings vs. YY Inc Class | Sabio Holdings vs. DouYu International Holdings | Sabio Holdings vs. Tencent Music Entertainment |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |