Correlation Between Pinterest and Taboola

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

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

Diversification Opportunities for Pinterest and Taboola

0.2

Correlation Coefficient

Pinterest  Taboola

Modest diversification

The 3 months correlation between Pinterest and Taboola is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Taboola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taboola and Pinterest 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 Pinterest 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 Pinterest i.e., Pinterest and Taboola go up and down completely randomly.

Pair Corralation between Pinterest and Taboola

Given the investment horizon of 90 days Pinterest is expected to generate 1.75 times more return on investment than Taboola. However, Pinterest is 1.75 times more volatile than Taboola. It trades about -0.14 of its potential returns per unit of risk. Taboola is currently generating about -0.26 per unit of risk. If you would invest  3,625  in Pinterest on July 18, 2025 and sell it today you would lose (292.00) from holding Pinterest or give up 8.06% of portfolio value over 90 days.

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

Pinterest  vs.  Taboola

Pinterest

Risk-Adjusted Performance

Weakest

Over the last 90 days Pinterest has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 latest inconsistent performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Pinterest and Taboola

The main advantage of trading using opposite Pinterest and Taboola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest 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 Pinterest 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.