Correlation Between MediaAlpha and TechTarget, Common

Can any of the company-specific risk be diversified away by investing in both MediaAlpha and TechTarget, Common 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 MediaAlpha and TechTarget, Common into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MediaAlpha and TechTarget, Common Stock, you can compare the effects of market volatilities on MediaAlpha and TechTarget, Common 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 MediaAlpha with a short position of TechTarget, Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and TechTarget, Common.

Diversification Opportunities for MediaAlpha and TechTarget, Common

-0.31

Correlation Coefficient

MediaAlpha  TechTarget, Common

Very good diversification

The 3 months correlation between MediaAlpha and TechTarget, is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and TechTarget, Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TechTarget, Common Stock and MediaAlpha 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 MediaAlpha are associated (or correlated) with TechTarget, Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TechTarget, Common Stock has no effect on the direction of MediaAlpha i.e., MediaAlpha and TechTarget, Common go up and down completely randomly.

Pair Corralation between MediaAlpha and TechTarget, Common

Considering the 90-day investment horizon MediaAlpha is expected to under-perform the TechTarget, Common. In addition to that, MediaAlpha is 1.2 times more volatile than TechTarget, Common Stock. It trades about -0.11 of its total potential returns per unit of risk. TechTarget, Common Stock is currently generating about -0.01 per unit of volatility. If you would invest  2,451  in TechTarget, Common Stock on September 13, 2024 and sell it today you would lose (223.00) from holding TechTarget, Common Stock or give up 9.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MediaAlpha  vs.  TechTarget, Common Stock

MediaAlpha

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MediaAlpha has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

TechTarget, Common Stock

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TechTarget, Common Stock has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, TechTarget, Common is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with MediaAlpha and TechTarget, Common

The main advantage of trading using opposite MediaAlpha and TechTarget, Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, TechTarget, Common 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 TechTarget, Common will offset losses from the drop in TechTarget, Common's long position.

The idea behind MediaAlpha and TechTarget, Common Stock 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.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.