Correlation Between Genius Sports and MediaAlpha
Can any of the company-specific risk be diversified away by investing in both Genius Sports 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 Genius Sports and MediaAlpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and MediaAlpha, you can compare the effects of market volatilities on Genius Sports 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 Genius Sports with a short position of MediaAlpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and MediaAlpha.
Diversification Opportunities for Genius Sports and MediaAlpha
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Genius and MediaAlpha is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Genius Sports 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 Genius Sports 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 Genius Sports i.e., Genius Sports and MediaAlpha go up and down completely randomly.
Pair Corralation between Genius Sports and MediaAlpha
Given the investment horizon of 90 days Genius Sports is expected to generate 0.91 times more return on investment than MediaAlpha. However, Genius Sports is 1.1 times less risky than MediaAlpha. It trades about 0.08 of its potential returns per unit of risk. MediaAlpha is currently generating about 0.01 per unit of risk. If you would invest 850.00 in Genius Sports on November 3, 2024 and sell it today you would earn a total of 33.00 from holding Genius Sports or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. MediaAlpha
Performance |
| Timeline |
| Genius Sports |
| MediaAlpha |
Genius Sports and MediaAlpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and MediaAlpha
The main advantage of trading using opposite Genius Sports and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports 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.| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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