Correlation Between Taboola and Match

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

By analyzing existing cross correlation between Taboola Ltd Warrant and Match Group, you can compare the effects of market volatilities on Taboola and Match 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 Taboola with a short position of Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taboola and Match.

Diversification Opportunities for Taboola and Match

0.65

Correlation Coefficient

Taboola  Match

Poor diversification

The 3 months correlation between Taboola and Match is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Taboola Ltd Warrant and Match Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group and Taboola 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 Taboola Ltd Warrant are associated (or correlated) with Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group has no effect on the direction of Taboola i.e., Taboola and Match go up and down completely randomly.

Pair Corralation between Taboola and Match

Assuming the 90 days horizon Taboola Ltd Warrant is expected to generate 4.58 times more return on investment than Match. However, Taboola is 4.58 times more volatile than Match Group. It trades about 0.08 of its potential returns per unit of risk. Match Group is currently generating about -0.15 per unit of risk. If you would invest  30.00  in Taboola Ltd Warrant on February 7, 2024 and sell it today you would earn a total of  2.00  from holding Taboola Ltd Warrant or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	86.36%
Values	Daily Returns

Taboola Ltd Warrant  vs.  Match Group

Taboola Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taboola Ltd Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Match Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Match Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Taboola and Match

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

The idea behind Taboola Ltd Warrant and Match Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.