Correlation Between MediaAlpha and YY
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and YY 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 YY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and YY Inc Class, you can compare the effects of market volatilities on MediaAlpha and YY 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 YY. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and YY.
Diversification Opportunities for MediaAlpha and YY
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between MediaAlpha and YY is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and YY Inc Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YY Inc Class 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 YY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YY Inc Class has no effect on the direction of MediaAlpha i.e., MediaAlpha and YY go up and down completely randomly.
Pair Corralation between MediaAlpha and YY
Considering the 90-day investment horizon MediaAlpha is expected to under-perform the YY. In addition to that, MediaAlpha is 2.34 times more volatile than YY Inc Class. It trades about -0.2 of its total potential returns per unit of risk. YY Inc Class is currently generating about 0.18 per unit of volatility. If you would invest 3,458 in YY Inc Class on August 30, 2024 and sell it today you would earn a total of 412.00 from holding YY Inc Class or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
MediaAlpha vs. YY Inc Class
Performance |
| Timeline |
| MediaAlpha |
| YY Inc Class |
MediaAlpha and YY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaAlpha and YY
The main advantage of trading using opposite MediaAlpha and YY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, YY 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 YY will offset losses from the drop in YY's long position.| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
| YY vs. Weibo Corp | YY vs. DouYu International Holdings | YY vs. Tencent Music Entertainment | YY vs. Autohome |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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