Correlation Between Trivago NV and Outbrain
Can any of the company-specific risk be diversified away by investing in both Trivago NV 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 Trivago NV and Outbrain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trivago NV and Outbrain, you can compare the effects of market volatilities on Trivago NV 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 Trivago NV with a short position of Outbrain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trivago NV and Outbrain.
Diversification Opportunities for Trivago NV and Outbrain
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Trivago and Outbrain is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Trivago NV and Outbrain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outbrain and Trivago NV 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 Trivago NV 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 Trivago NV i.e., Trivago NV and Outbrain go up and down completely randomly.
Pair Corralation between Trivago NV and Outbrain
Given the investment horizon of 90 days Trivago NV is expected to generate 1.1 times less return on investment than Outbrain. In addition to that, Trivago NV is 1.09 times more volatile than Outbrain. It trades about 0.07 of its total potential returns per unit of risk. Outbrain is currently generating about 0.08 per unit of volatility. If you would invest 489.00 in Outbrain on August 31, 2024 and sell it today you would earn a total of 57.00 from holding Outbrain or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trivago NV vs. Outbrain
Performance |
| Timeline |
| Trivago NV |
| Outbrain |
Trivago NV and Outbrain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trivago NV and Outbrain
The main advantage of trading using opposite Trivago NV and Outbrain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trivago NV 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.| Trivago NV vs. Upexi Inc | Trivago NV vs. Cheetah Mobile | Trivago NV vs. Comscore | Trivago NV vs. PropertyGuru Group |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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