Correlation Between MediaAlpha and Phoenix New
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Phoenix New 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 Phoenix New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Phoenix New Media, you can compare the effects of market volatilities on MediaAlpha and Phoenix New 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 Phoenix New. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Phoenix New.
Diversification Opportunities for MediaAlpha and Phoenix New
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MediaAlpha and Phoenix is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Phoenix New Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix New Media 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 Phoenix New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix New Media has no effect on the direction of MediaAlpha i.e., MediaAlpha and Phoenix New go up and down completely randomly.
Pair Corralation between MediaAlpha and Phoenix New
Considering the 90-day investment horizon MediaAlpha is expected to under-perform the Phoenix New. In addition to that, MediaAlpha is 1.14 times more volatile than Phoenix New Media. It trades about -0.11 of its total potential returns per unit of risk. Phoenix New Media is currently generating about -0.06 per unit of volatility. If you would invest 319.00 in Phoenix New Media on August 30, 2024 and sell it today you would lose (56.00) from holding Phoenix New Media or give up 17.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.73% |
| Values | Daily Returns |
MediaAlpha vs. Phoenix New Media
Performance |
| Timeline |
| MediaAlpha |
| Phoenix New Media |
MediaAlpha and Phoenix New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Phoenix New
The main advantage of trading using opposite MediaAlpha and Phoenix New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Phoenix New 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 Phoenix New will offset losses from the drop in Phoenix New's long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| Phoenix New vs. Onfolio Holdings | Phoenix New vs. Starbox Group Holdings | Phoenix New vs. MediaAlpha | Phoenix New vs. Metalpha Technology Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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