Correlation Between Vivid Seats and MediaAlpha
Can any of the company-specific risk be diversified away by investing in both Vivid Seats 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 Vivid Seats and MediaAlpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivid Seats and MediaAlpha, you can compare the effects of market volatilities on Vivid Seats 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 Vivid Seats with a short position of MediaAlpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivid Seats and MediaAlpha.
Diversification Opportunities for Vivid Seats and MediaAlpha
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vivid and MediaAlpha is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Vivid Seats and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Vivid Seats 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 Vivid Seats 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 Vivid Seats i.e., Vivid Seats and MediaAlpha go up and down completely randomly.
Pair Corralation between Vivid Seats and MediaAlpha
Given the investment horizon of 90 days Vivid Seats is expected to generate 0.88 times more return on investment than MediaAlpha. However, Vivid Seats is 1.13 times less risky than MediaAlpha. It trades about 0.03 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.09 per unit of risk. If you would invest 413.00 in Vivid Seats on November 1, 2024 and sell it today you would earn a total of 11.00 from holding Vivid Seats or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivid Seats vs. MediaAlpha
Performance |
| Timeline |
| Vivid Seats |
| MediaAlpha |
Vivid Seats and MediaAlpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivid Seats and MediaAlpha
The main advantage of trading using opposite Vivid Seats and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivid Seats 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.| Vivid Seats vs. Onfolio Holdings | Vivid Seats vs. EverQuote Class A | Vivid Seats vs. Asset Entities Class | Vivid Seats vs. MediaAlpha |
| MediaAlpha vs. Asset Entities Class | MediaAlpha vs. Yelp Inc | MediaAlpha vs. BuzzFeed | MediaAlpha vs. Vivid Seats |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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