Correlation Between MediaAlpha and Onfolio Holdings
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Onfolio Holdings 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 Onfolio Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Onfolio Holdings, you can compare the effects of market volatilities on MediaAlpha and Onfolio Holdings 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 Onfolio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Onfolio Holdings.
Diversification Opportunities for MediaAlpha and Onfolio Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaAlpha and Onfolio is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Onfolio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onfolio Holdings 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 Onfolio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onfolio Holdings has no effect on the direction of MediaAlpha i.e., MediaAlpha and Onfolio Holdings go up and down completely randomly.
Pair Corralation between MediaAlpha and Onfolio Holdings
Considering the 90-day investment horizon MediaAlpha is expected to under-perform the Onfolio Holdings. But the stock apears to be less risky and, when comparing its historical volatility, MediaAlpha is 1.43 times less risky than Onfolio Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The Onfolio Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 96.00 in Onfolio Holdings on August 23, 2024 and sell it today you would earn a total of 23.00 from holding Onfolio Holdings or generate 23.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. Onfolio Holdings
Performance |
| Timeline |
| MediaAlpha |
| Onfolio Holdings |
MediaAlpha and Onfolio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Onfolio Holdings
The main advantage of trading using opposite MediaAlpha and Onfolio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Onfolio Holdings 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 Onfolio Holdings will offset losses from the drop in Onfolio Holdings' long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| Onfolio Holdings vs. Vivid Seats | Onfolio Holdings vs. EverQuote Class A | Onfolio Holdings vs. Asset Entities Class | Onfolio Holdings vs. Zhihu Inc ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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