Correlation Between MediaAlpha and Genius Sports
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Genius Sports 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 Genius Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Genius Sports, you can compare the effects of market volatilities on MediaAlpha and Genius Sports 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 Genius Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Genius Sports.
Diversification Opportunities for MediaAlpha and Genius Sports
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MediaAlpha and Genius is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Genius Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genius Sports 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 Genius Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genius Sports has no effect on the direction of MediaAlpha i.e., MediaAlpha and Genius Sports go up and down completely randomly.
Pair Corralation between MediaAlpha and Genius Sports
Considering the 90-day investment horizon MediaAlpha is expected to generate 5.08 times less return on investment than Genius Sports. In addition to that, MediaAlpha is 1.1 times more volatile than Genius Sports. It trades about 0.01 of its total potential returns per unit of risk. Genius Sports is currently generating about 0.08 per unit of volatility. 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 |
MediaAlpha vs. Genius Sports
Performance |
| Timeline |
| MediaAlpha |
| Genius Sports |
MediaAlpha and Genius Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Genius Sports
The main advantage of trading using opposite MediaAlpha and Genius Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Genius Sports 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 Genius Sports will offset losses from the drop in Genius Sports' long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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