Correlation Between Applied Blockchain and Mediaalpha Inc

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

Diversification Opportunities for Applied Blockchain and Mediaalpha Inc

  Correlation Coefficient

Good diversification

The 3 months correlation between Applied and Mediaalpha is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Applied Blockchain and Mediaalpha Inc Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaalpha Inc and Applied Blockchain 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 Applied Blockchain 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 Applied Blockchain i.e., Applied Blockchain and Mediaalpha Inc go up and down completely randomly.

Pair Corralation between Applied Blockchain and Mediaalpha Inc

Given the investment horizon of 90 days Applied Blockchain is expected to generate 5.05 times more return on investment than Mediaalpha Inc. However, Applied Blockchain is 5.05 times more volatile than Mediaalpha Inc Cl. It trades about 0.12 of its potential returns per unit of risk. Mediaalpha Inc Cl is currently generating about -0.04 per unit of risk. If you would invest  5.10  in Applied Blockchain on July 9, 2022 and sell it today you would earn a total of  149.90  from holding Applied Blockchain or generate 2939.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Applied Blockchain  vs.  Mediaalpha Inc Cl

 Performance (%) 
Applied Blockchain 
Applied Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Applied Blockchain are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Applied Blockchain exhibited solid returns over the last few months and may actually be approaching a breakup point.

Applied 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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Mediaalpha Price Channel

Applied Blockchain and Mediaalpha Inc Volatility Contrast

   Predicted Return Density   

Pair Trading with Applied Blockchain and Mediaalpha Inc

The main advantage of trading using opposite Applied Blockchain and Mediaalpha Inc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Blockchain 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.
Applied Blockchain vs. Amazon Inc
The idea behind Applied Blockchain 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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