Correlation Between Shutterstock and MediaAlpha
Can any of the company-specific risk be diversified away by investing in both Shutterstock 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 Shutterstock and MediaAlpha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shutterstock and MediaAlpha, you can compare the effects of market volatilities on Shutterstock 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 Shutterstock with a short position of MediaAlpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shutterstock and MediaAlpha.
Diversification Opportunities for Shutterstock and MediaAlpha
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shutterstock and MediaAlpha is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shutterstock and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Shutterstock 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 Shutterstock 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 Shutterstock i.e., Shutterstock and MediaAlpha go up and down completely randomly.
Pair Corralation between Shutterstock and MediaAlpha
Given the investment horizon of 90 days Shutterstock is expected to under-perform the MediaAlpha. But the stock apears to be less risky and, when comparing its historical volatility, Shutterstock is 1.37 times less risky than MediaAlpha. The stock trades about -0.02 of its potential returns per unit of risk. The MediaAlpha is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 926.00 in MediaAlpha on August 31, 2024 and sell it today you would earn a total of 337.00 from holding MediaAlpha or generate 36.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shutterstock vs. MediaAlpha
Performance |
| Timeline |
| Shutterstock |
| MediaAlpha |
Shutterstock and MediaAlpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shutterstock and MediaAlpha
The main advantage of trading using opposite Shutterstock and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shutterstock 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.| Shutterstock vs. Yelp Inc | Shutterstock vs. Match Group | Shutterstock vs. Snap Inc | Shutterstock vs. Onfolio Holdings |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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