Correlation Between Outbrain and TechTarget, Common

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

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

Diversification Opportunities for Outbrain and TechTarget, Common

-0.42

Correlation Coefficient

Outbrain  TechTarget, Common

Very good diversification

The 3 months correlation between Outbrain and TechTarget, is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Outbrain and TechTarget, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget, Common Stock 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 TechTarget, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget, Common Stock has no effect on the direction of Outbrain i.e., Outbrain and TechTarget, Common go up and down completely randomly.

Pair Corralation between Outbrain and TechTarget, Common

Allowing for the 90-day total investment horizon Outbrain is expected to generate 1.08 times more return on investment than TechTarget, Common. However, Outbrain is 1.08 times more volatile than TechTarget, Common Stock. It trades about -0.02 of its potential returns per unit of risk. TechTarget, Common Stock is currently generating about -0.31 per unit of risk. If you would invest  547.00  in Outbrain on December 2, 2024 and sell it today you would lose (51.00) from holding Outbrain or give up 9.32% of portfolio value over 90 days.

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

Outbrain  vs.  TechTarget, Common Stock

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 somewhat strong fundamental drivers, Outbrain is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

TechTarget, Common Stock

Risk-Adjusted Performance

Very Weak

Over the last 90 days TechTarget, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Outbrain and TechTarget, Common

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

The idea behind Outbrain and TechTarget, Common Stock 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.