Mediaalpha Stock Volatility

MAX
 Stock
  

USD 10.84  0.63  5.49%   

Mediaalpha Inc appears to be somewhat reliable, given 3 months investment horizon. Mediaalpha Inc has Sharpe Ratio of 0.11, which conveys that the firm had 0.11% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By analyzing Mediaalpha Inc technical indicators you can presently evaluate if the expected return of 0.55% is justified by implied risk. Please exercise Mediaalpha Inc's Downside Deviation of 3.56, risk adjusted performance of 0.134, and Mean Deviation of 2.9 to check out if our risk estimates are consistent with your expectations.
  
Mediaalpha Inc Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Mediaalpha daily returns, and it is calculated using variance and standard deviation. We also use Mediaalpha's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Mediaalpha Inc volatility.

180 Days Market Risk

Somewhat reliable

Chance of Distress

Above Average

180 Days Economic Sensitivity

Responds to the market
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Mediaalpha Inc can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Mediaalpha Inc at lower prices. For example, an investor can purchase Mediaalpha stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Mediaalpha Inc's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Moving against Mediaalpha Inc

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-0.66GOOGAlphabet Cl CPairCorr
-0.56HYMTFHyundai Motor RegPairCorr

Mediaalpha Inc Market Sensitivity And Downside Risk

Mediaalpha Inc's beta coefficient measures the volatility of Mediaalpha stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Mediaalpha stock's returns against your selected market. In other words, Mediaalpha Inc's beta of 1.39 provides an investor with an approximation of how much risk Mediaalpha Inc stock can potentially add to one of your existing portfolios.
Mediaalpha Inc Cl shows above-average downside volatility for the selected time horizon. We advise investors to inspect Mediaalpha Inc Cl further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Mediaalpha Inc future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mediaalpha Inc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mediaalpha Inc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Mediaalpha Inc Demand Trend
Check current 90 days Mediaalpha Inc correlation with market (DOW)

Mediaalpha Beta

    
  1.39  
Mediaalpha standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  5.13  
It is essential to understand the difference between upside risk (as represented by Mediaalpha Inc's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Mediaalpha Inc's daily returns or price. Since the actual investment returns on holding a position in mediaalpha stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Mediaalpha Inc.

Using Mediaalpha Put Option to Manage Risk

Put options written on Mediaalpha Inc grant holders of the option the right to sell a specified amount of Mediaalpha Inc at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Mediaalpha Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Mediaalpha Inc's position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Mediaalpha Inc will be realized, the loss incurred will be offset by the profits made with the option trade.

Mediaalpha Inc's PUT expiring on 2022-12-16

   Profit   
Share
       Mediaalpha Inc Price At Expiration  

Current Mediaalpha Inc Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-12-16 PUT at $15.0-0.82970.079632022-12-162.95 - 4.41.75View
Put
2022-12-16 PUT at $12.5-0.66060.130232022-12-160.55 - 2.21.2View
View All Mediaalpha Inc Options

Mediaalpha Inc Stock Volatility Analysis

Volatility refers to the frequency at which Mediaalpha Inc stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Mediaalpha Inc's price changes. Investors will then calculate the volatility of Mediaalpha Inc's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Mediaalpha Inc's volatility:

Historical Volatility

This type of stock volatility measures Mediaalpha Inc's fluctuations based on previous trends. It's commonly used to predict Mediaalpha Inc's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Mediaalpha Inc's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Mediaalpha Inc's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. The Median Price line plots median indexes of Mediaalpha Inc price series.
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Mediaalpha Inc Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.3877 . This indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Mediaalpha Inc will likely underperform.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Mediaalpha Inc or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Mediaalpha Inc's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Mediaalpha stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.3533, implying that it can generate a 0.35 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Mediaalpha Inc's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how mediaalpha stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Mediaalpha Inc Price Volatility?

Several factors can influence a Stock's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Mediaalpha Inc Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Mediaalpha Inc or Communication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Mediaalpha Inc's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Mediaalpha stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Considering the 90-day investment horizon the coefficient of variation of Mediaalpha Inc is 936.06. The daily returns are distributed with a variance of 26.36 and standard deviation of 5.13. The mean deviation of Mediaalpha Inc Cl is currently at 3.0. For similar time horizon, the selected benchmark (DOW) has volatility of 1.37
α
Alpha over DOW
0.35
β
Beta against DOW1.39
σ
Overall volatility
5.13
Ir
Information ratio 0.08

Mediaalpha Inc Stock Return Volatility

Mediaalpha Inc historical daily return volatility represents how much of Mediaalpha Inc stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company has volatility of 5.1339% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.3973% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Mediaalpha Inc Volatility

Volatility is a rate at which the price of Mediaalpha Inc or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Mediaalpha Inc may increase or decrease. In other words, similar to Mediaalpha's beta indicator, it measures the risk of Mediaalpha Inc and helps estimate the fluctuations that may happen in a short period of time. So if prices of Mediaalpha Inc fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
MediaAlpha, Inc., through its subsidiaries, operates an insurance customer acquisition platform in the United States. The company was founded in 2014 and is headquartered in Los Angeles, California. Mediaalpha Inc operates under Internet Content Information classification in the United States and is traded on New York Stock Exchange. It employs 149 people.

Mediaalpha Inc Investment Opportunity

Mediaalpha Inc Cl has a volatility of 5.13 and is 3.66 times more volatile than DOW. 44  of all equities and portfolios are less risky than Mediaalpha Inc. Compared to the overall equity markets, volatility of historical daily returns of Mediaalpha Inc Cl is lower than 44 () of all global equities and portfolios over the last 90 days. Use Mediaalpha Inc Cl to protect your portfolios against small market fluctuations. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences a very speculative upward sentiment. Check odds of Mediaalpha Inc to be traded at $10.3 in 90 days.

Weak diversification

The correlation between Mediaalpha Inc Cl and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Mediaalpha Inc Cl and DJI in the same portfolio, assuming nothing else is changed.

Mediaalpha Inc Additional Risk Indicators

The analysis of Mediaalpha Inc's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Mediaalpha Inc's investment and either accepting that risk or mitigating it. Along with some common measures of Mediaalpha Inc stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Mediaalpha Inc Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Mediaalpha Inc as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Mediaalpha Inc's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Mediaalpha Inc's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Mediaalpha Inc Cl.
Additionally, see Correlation Analysis. Note that the Mediaalpha Inc information on this page should be used as a complementary analysis to other Mediaalpha Inc's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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When running Mediaalpha Inc price analysis, check to measure Mediaalpha Inc's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mediaalpha Inc is operating at the current time. Most of Mediaalpha Inc's value examination focuses on studying past and present price action to predict the probability of Mediaalpha Inc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mediaalpha Inc's price. Additionally, you may evaluate how the addition of Mediaalpha Inc to your portfolios can decrease your overall portfolio volatility.
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Is Mediaalpha Inc's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mediaalpha Inc. If investors know Mediaalpha will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mediaalpha Inc listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
652.6 M
Quarterly Revenue Growth YOY
(0.42) 
Return On Assets
(0.09) 
The market value of Mediaalpha Inc is measured differently than its book value, which is the value of Mediaalpha that is recorded on the company's balance sheet. Investors also form their own opinion of Mediaalpha Inc's value that differs from its market value or its book value, called intrinsic value, which is Mediaalpha Inc's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mediaalpha Inc's market value can be influenced by many factors that don't directly affect Mediaalpha Inc's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mediaalpha Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine Mediaalpha Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mediaalpha Inc's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.