Correlation Between Outbrain and Comscore

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

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

Diversification Opportunities for Outbrain and Comscore

-0.29

Correlation Coefficient

Outbrain  Comscore

Very good diversification

The 3 months correlation between Outbrain and Comscore is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and Comscore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comscore 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 Comscore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comscore has no effect on the direction of Outbrain i.e., Outbrain and Comscore go up and down completely randomly.

Pair Corralation between Outbrain and Comscore

Allowing for the 90-day total investment horizon Outbrain is expected to generate 0.69 times more return on investment than Comscore. However, Outbrain is 1.44 times less risky than Comscore. It trades about -0.08 of its potential returns per unit of risk. Comscore is currently generating about -0.06 per unit of risk. If you would invest  622.00  in Outbrain on December 4, 2024 and sell it today you would lose (126.00) from holding Outbrain or give up 20.26% of portfolio value over 90 days.

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

Outbrain  vs.  Comscore

Outbrain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Outbrain has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Comscore

Risk-Adjusted Performance

Very Weak

Over the last 90 days Comscore has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Outbrain and Comscore

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

The idea behind Outbrain and Comscore 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.