Correlation Between MediaAlpha and BuzzFeed
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and BuzzFeed 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 MediaAlpha and BuzzFeed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and BuzzFeed, you can compare the effects of market volatilities on MediaAlpha and BuzzFeed 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 MediaAlpha with a short position of BuzzFeed. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and BuzzFeed.
Diversification Opportunities for MediaAlpha and BuzzFeed
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaAlpha and BuzzFeed is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and BuzzFeed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BuzzFeed and MediaAlpha 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 MediaAlpha are associated (or correlated) with BuzzFeed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BuzzFeed has no effect on the direction of MediaAlpha i.e., MediaAlpha and BuzzFeed go up and down completely randomly.
Pair Corralation between MediaAlpha and BuzzFeed
Considering the 90-day investment horizon MediaAlpha is expected to generate 146.47 times less return on investment than BuzzFeed. But when comparing it to its historical volatility, MediaAlpha is 3.4 times less risky than BuzzFeed. It trades about 0.0 of its potential returns per unit of risk. BuzzFeed is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 12.00 in BuzzFeed on October 21, 2024 and sell it today you would earn a total of 3.00 from holding BuzzFeed or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. BuzzFeed
Performance |
| Timeline |
| MediaAlpha |
| BuzzFeed |
MediaAlpha and BuzzFeed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and BuzzFeed
The main advantage of trading using opposite MediaAlpha and BuzzFeed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, BuzzFeed 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 BuzzFeed will offset losses from the drop in BuzzFeed's long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| BuzzFeed vs. BuzzFeed | BuzzFeed vs. BigBearai Holdings, WT | BuzzFeed vs. Grab Holdings Limited | BuzzFeed vs. Arqit Quantum Warrants |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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