Correlation Between MediaAlpha and Upexi
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Upexi 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 Upexi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Upexi Inc, you can compare the effects of market volatilities on MediaAlpha and Upexi 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 Upexi. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Upexi.
Diversification Opportunities for MediaAlpha and Upexi
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between MediaAlpha and Upexi is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc 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 Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of MediaAlpha i.e., MediaAlpha and Upexi go up and down completely randomly.
Pair Corralation between MediaAlpha and Upexi
Considering the 90-day investment horizon MediaAlpha is expected to generate 0.44 times more return on investment than Upexi. However, MediaAlpha is 2.28 times less risky than Upexi. It trades about 0.03 of its potential returns per unit of risk. Upexi Inc is currently generating about -0.02 per unit of risk. If you would invest 1,055 in MediaAlpha on August 28, 2024 and sell it today you would earn a total of 242.00 from holding MediaAlpha or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MediaAlpha vs. Upexi Inc
Performance |
| Timeline |
| MediaAlpha |
| Upexi Inc |
MediaAlpha and Upexi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and Upexi
The main advantage of trading using opposite MediaAlpha and Upexi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Upexi 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 Upexi will offset losses from the drop in Upexi's long position.| MediaAlpha vs. Alphabet Inc Class C | MediaAlpha vs. Twilio Inc | MediaAlpha vs. Snap Inc | MediaAlpha 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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