Correlation Between Angi and Mediaalpha Inc

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Can any of the company-specific risk be diversified away by investing in both Angi and Mediaalpha Inc 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 Angi and Mediaalpha Inc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angi Inc and Mediaalpha Inc Cl, you can compare the effects of market volatilities on Angi and Mediaalpha Inc 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 Angi with a short position of Mediaalpha Inc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angi and Mediaalpha Inc.

Diversification Opportunities for Angi and Mediaalpha Inc

0.56
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Angi and Mediaalpha is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Angi Inc and Mediaalpha Inc Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaalpha Inc and Angi 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 Angi Inc are associated (or correlated) with Mediaalpha Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaalpha Inc has no effect on the direction of Angi i.e., Angi and Mediaalpha Inc go up and down completely randomly.

Pair Corralation between Angi and Mediaalpha Inc

Given the investment horizon of 90 days Angi Inc is expected to under-perform the Mediaalpha Inc. But the stock apears to be less risky and, when comparing its historical volatility, Angi Inc is 1.21 times less risky than Mediaalpha Inc. The stock trades about -0.27 of its potential returns per unit of risk. The Mediaalpha Inc Cl is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  1,206  in Mediaalpha Inc Cl on July 1, 2022 and sell it today you would lose (268.00)  from holding Mediaalpha Inc Cl or give up 22.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Angi Inc  vs.  Mediaalpha Inc Cl

 Performance (%) 
       Timeline  
Angi Inc 
Angi Performance
0 of 100
Over the last 90 days Angi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Angi Price Channel

Mediaalpha Inc 
Mediaalpha Performance
0 of 100
Over the last 90 days Mediaalpha Inc Cl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Mediaalpha Inc is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Mediaalpha Price Channel

Angi and Mediaalpha Inc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Angi and Mediaalpha Inc

The main advantage of trading using opposite Angi and Mediaalpha Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angi position performs unexpectedly, Mediaalpha Inc 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 Inc will offset losses from the drop in Mediaalpha Inc's long position.
Angi vs. Tencent Holdings
The idea behind Angi Inc and Mediaalpha Inc Cl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Mediaalpha Inc vs. Tencent Holdings
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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