Correlation Between MediaAlpha and Fiverr International
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Fiverr International 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 Fiverr International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Fiverr International, you can compare the effects of market volatilities on MediaAlpha and Fiverr International 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 Fiverr International. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Fiverr International.
Diversification Opportunities for MediaAlpha and Fiverr International
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MediaAlpha and Fiverr is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Fiverr International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiverr International 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 Fiverr International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiverr International has no effect on the direction of MediaAlpha i.e., MediaAlpha and Fiverr International go up and down completely randomly.
Pair Corralation between MediaAlpha and Fiverr International
Considering the 90-day investment horizon MediaAlpha is expected to under-perform the Fiverr International. In addition to that, MediaAlpha is 1.44 times more volatile than Fiverr International. It trades about -0.06 of its total potential returns per unit of risk. Fiverr International is currently generating about 0.16 per unit of volatility. If you would invest 2,428 in Fiverr International on August 28, 2024 and sell it today you would earn a total of 891.00 from holding Fiverr International or generate 36.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. Fiverr International
Performance |
| Timeline |
| MediaAlpha |
| Fiverr International |
MediaAlpha and Fiverr International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Fiverr International
The main advantage of trading using opposite MediaAlpha and Fiverr International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Fiverr International 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 Fiverr International will offset losses from the drop in Fiverr International's long position.| MediaAlpha vs. Alphabet Inc Class C | MediaAlpha vs. Twilio Inc | MediaAlpha vs. Snap Inc | MediaAlpha vs. Baidu Inc |
| Fiverr International vs. Snap Inc | Fiverr International vs. Twilio Inc | Fiverr International vs. Spotify Technology SA | Fiverr International vs. Baidu Inc |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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