Correlation Between Perion Network and MediaAlpha
Can any of the company-specific risk be diversified away by investing in both Perion Network and MediaAlpha 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 Perion Network and MediaAlpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perion Network and MediaAlpha, you can compare the effects of market volatilities on Perion Network and MediaAlpha 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 Perion Network with a short position of MediaAlpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perion Network and MediaAlpha.
Diversification Opportunities for Perion Network and MediaAlpha
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Perion and MediaAlpha is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Perion Network and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Perion Network 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 Perion Network are associated (or correlated) with MediaAlpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaAlpha has no effect on the direction of Perion Network i.e., Perion Network and MediaAlpha go up and down completely randomly.
Pair Corralation between Perion Network and MediaAlpha
Given the investment horizon of 90 days Perion Network is expected to generate 0.28 times more return on investment than MediaAlpha. However, Perion Network is 3.51 times less risky than MediaAlpha. It trades about 0.08 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.21 per unit of risk. If you would invest 829.00 in Perion Network on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Perion Network or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perion Network vs. MediaAlpha
Performance |
| Timeline |
| Perion Network |
| MediaAlpha |
Perion Network and MediaAlpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perion Network and MediaAlpha
The main advantage of trading using opposite Perion Network and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perion Network position performs unexpectedly, MediaAlpha 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 MediaAlpha will offset losses from the drop in MediaAlpha's long position.| Perion Network vs. MediaAlpha | Perion Network vs. Vivid Seats | Perion Network vs. Jiayin Group | Perion Network vs. Hello Group |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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