Correlation Between MediaAlpha and Starbox Group
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Starbox Group 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 Starbox Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Starbox Group Holdings, you can compare the effects of market volatilities on MediaAlpha and Starbox Group 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 Starbox Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Starbox Group.
Diversification Opportunities for MediaAlpha and Starbox Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaAlpha and Starbox is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Starbox Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starbox Group 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 Starbox Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starbox Group Holdings has no effect on the direction of MediaAlpha i.e., MediaAlpha and Starbox Group go up and down completely randomly.
Pair Corralation between MediaAlpha and Starbox Group
Considering the 90-day investment horizon MediaAlpha is expected to generate 0.21 times more return on investment than Starbox Group. However, MediaAlpha is 4.74 times less risky than Starbox Group. It trades about 0.28 of its potential returns per unit of risk. Starbox Group Holdings is currently generating about -0.5 per unit of risk. If you would invest 1,114 in MediaAlpha on November 18, 2024 and sell it today you would earn a total of 164.00 from holding MediaAlpha or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. Starbox Group Holdings
Performance |
| Timeline |
| MediaAlpha |
| Starbox Group Holdings |
MediaAlpha and Starbox Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Starbox Group
The main advantage of trading using opposite MediaAlpha and Starbox Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Starbox Group 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 Starbox Group will offset losses from the drop in Starbox Group's long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| Starbox Group vs. Onfolio Holdings | Starbox Group vs. MediaAlpha | Starbox Group vs. Asset Entities Class | Starbox Group vs. Yelp 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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