Correlation Between IZEA and Taboola

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

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

Diversification Opportunities for IZEA and Taboola

0.18

Correlation Coefficient

IZEA  Taboola

Average diversification

The 3 months correlation between IZEA and Taboola is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding IZEA Inc and Taboola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola and IZEA 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 IZEA Inc are associated (or correlated) with Taboola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taboola has no effect on the direction of IZEA i.e., IZEA and Taboola go up and down completely randomly.

Pair Corralation between IZEA and Taboola

Given the investment horizon of 90 days IZEA Inc is expected to generate 2.24 times more return on investment than Taboola. However, IZEA is 2.24 times more volatile than Taboola. It trades about 0.26 of its potential returns per unit of risk. Taboola is currently generating about 0.03 per unit of risk. If you would invest  189.00  in IZEA Inc on May 5, 2025 and sell it today you would earn a total of  182.00  from holding IZEA Inc or generate 96.3% return on investment over 90 days.

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

IZEA Inc  vs.  Taboola

IZEA Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IZEA Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, IZEA sustained solid returns over the last few months and may actually be approaching a breakup point.

Taboola

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Taboola are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, Taboola is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with IZEA and Taboola

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

The idea behind IZEA Inc and Taboola 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.