Correlation Between MaxLinear and Taboola

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

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

Diversification Opportunities for MaxLinear and Taboola

-0.44

Correlation Coefficient

MaxLinear  Taboola

Very good diversification

The 3 months correlation between MaxLinear and Taboola is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and Taboola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola and MaxLinear 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 MaxLinear 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 MaxLinear i.e., MaxLinear and Taboola go up and down completely randomly.

Pair Corralation between MaxLinear and Taboola

Considering the 90-day investment horizon MaxLinear is expected to generate 1.66 times more return on investment than Taboola. However, MaxLinear is 1.66 times more volatile than Taboola. It trades about 0.16 of its potential returns per unit of risk. Taboola is currently generating about -0.01 per unit of risk. If you would invest  1,157  in MaxLinear on May 21, 2025 and sell it today you would earn a total of  385.00  from holding MaxLinear or generate 33.28% return on investment over 90 days.

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

MaxLinear  vs.  Taboola

MaxLinear

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in MaxLinear are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, MaxLinear disclosed solid returns over the last few months and may actually be approaching a breakup point.

Taboola

Risk-Adjusted Performance

Weakest

Over the last 90 days Taboola has generated negative risk-adjusted returns adding no value to investors with long positions. 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 MaxLinear and Taboola

The main advantage of trading using opposite MaxLinear and Taboola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxLinear 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 MaxLinear 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.

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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.