Correlation Between Asset Entities and MediaAlpha
Can any of the company-specific risk be diversified away by investing in both Asset Entities and MediaAlpha 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 Asset Entities and MediaAlpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asset Entities Class and MediaAlpha, you can compare the effects of market volatilities on Asset Entities and MediaAlpha 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 Asset Entities with a short position of MediaAlpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asset Entities and MediaAlpha.
Diversification Opportunities for Asset Entities and MediaAlpha
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Asset and MediaAlpha is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asset Entities Class and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Asset Entities 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 Asset Entities Class are associated (or correlated) with MediaAlpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaAlpha has no effect on the direction of Asset Entities i.e., Asset Entities and MediaAlpha go up and down completely randomly.
Pair Corralation between Asset Entities and MediaAlpha
Given the investment horizon of 90 days Asset Entities Class is expected to generate 3.79 times more return on investment than MediaAlpha. However, Asset Entities is 3.79 times more volatile than MediaAlpha. It trades about 0.04 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.09 per unit of risk. If you would invest 84.00 in Asset Entities Class on November 1, 2024 and sell it today you would lose (26.00) from holding Asset Entities Class or give up 30.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asset Entities Class vs. MediaAlpha
Performance |
| Timeline |
| Asset Entities Class |
| MediaAlpha |
Asset Entities and MediaAlpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asset Entities and MediaAlpha
The main advantage of trading using opposite Asset Entities and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asset Entities position performs unexpectedly, MediaAlpha 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 MediaAlpha will offset losses from the drop in MediaAlpha's long position.| Asset Entities vs. MediaAlpha | Asset Entities vs. Yelp Inc | Asset Entities vs. BuzzFeed | Asset Entities vs. Onfolio Holdings |
| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |