Correlation Between Comscore and Outbrain
Can any of the company-specific risk be diversified away by investing in both Comscore 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 Comscore and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comscore and Outbrain, you can compare the effects of market volatilities on Comscore 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 Comscore with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comscore and Outbrain.
Diversification Opportunities for Comscore and Outbrain
Very weak diversification
The 3 months correlation between Comscore and Outbrain is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Comscore and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Comscore 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 Comscore 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 Comscore i.e., Comscore and Outbrain go up and down completely randomly.
Pair Corralation between Comscore and Outbrain
Given the investment horizon of 90 days Comscore is expected to under-perform the Outbrain. In addition to that, Comscore is 2.02 times more volatile than Outbrain. It trades about -0.02 of its total potential returns per unit of risk. Outbrain is currently generating about 0.05 per unit of volatility. If you would invest 396.00 in Outbrain on August 27, 2024 and sell it today you would earn a total of 109.00 from holding Outbrain or generate 27.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Comscore vs. Outbrain
Performance |
| Timeline |
| Comscore |
| Outbrain |
Comscore and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Comscore and Outbrain
The main advantage of trading using opposite Comscore and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comscore 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.| Comscore vs. Cheetah Mobile | Comscore vs. PropertyGuru Group | Comscore vs. EverQuote Class A | Comscore vs. TechTarget |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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