Correlation Between MediaAlpha and Super League
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Super League 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 Super League into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Super League Enterprise, you can compare the effects of market volatilities on MediaAlpha and Super League 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 Super League. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Super League.
Diversification Opportunities for MediaAlpha and Super League
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MediaAlpha and Super is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise 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 Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of MediaAlpha i.e., MediaAlpha and Super League go up and down completely randomly.
Pair Corralation between MediaAlpha and Super League
Considering the 90-day investment horizon MediaAlpha is expected to generate 0.5 times more return on investment than Super League. However, MediaAlpha is 1.99 times less risky than Super League. It trades about 0.03 of its potential returns per unit of risk. Super League Enterprise is currently generating about -0.03 per unit of risk. If you would invest 1,033 in MediaAlpha on September 3, 2024 and sell it today you would earn a total of 230.00 from holding MediaAlpha or generate 22.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. Super League Enterprise
Performance |
| Timeline |
| MediaAlpha |
| Super League Enterprise |
MediaAlpha and Super League Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Super League
The main advantage of trading using opposite MediaAlpha and Super League positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Super League 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 Super League will offset losses from the drop in Super League's long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Cheetah Mobile |
| Super League vs. Vita Coco | Super League vs. KNOT Offshore Partners | Super League vs. Here Media | Super League vs. Solstad Offshore ASA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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