Correlation Between Outbrain and Snail,

Can any of the company-specific risk be diversified away by investing in both Outbrain and Snail, 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 Snail, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Outbrain and Snail, Class A, you can compare the effects of market volatilities on Outbrain and Snail, 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 Snail,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Outbrain and Snail,.

Diversification Opportunities for Outbrain and Snail,

-0.08

Correlation Coefficient

Outbrain  Snail,

Good diversification

The 3 months correlation between Outbrain and Snail, is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Snail, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snail, Class A 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 Snail,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snail, Class A has no effect on the direction of Outbrain i.e., Outbrain and Snail, go up and down completely randomly.

Pair Corralation between Outbrain and Snail,

Allowing for the 90-day total investment horizon Outbrain is expected to generate 3.12 times less return on investment than Snail,. But when comparing it to its historical volatility, Outbrain is 5.62 times less risky than Snail,. It trades about 0.21 of its potential returns per unit of risk. Snail, Class A is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  79.00  in Snail, Class A on September 12, 2024 and sell it today you would earn a total of  55.00  from holding Snail, Class A or generate 69.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Outbrain  vs.  Snail, Class A

Outbrain

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Outbrain are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental drivers, Outbrain sustained solid returns over the last few months and may actually be approaching a breakup point.

Snail, Class A

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Snail, Class A are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Snail, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Outbrain and Snail,

The main advantage of trading using opposite Outbrain and Snail, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Outbrain position performs unexpectedly, Snail, 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 Snail, will offset losses from the drop in Snail,'s long position.

The idea behind Outbrain and Snail, Class A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.