Correlation Between Mediaco Holding and Auddia

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

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

Diversification Opportunities for Mediaco Holding and Auddia

0.58

Correlation Coefficient

Mediaco Holding  Auddia

Very weak diversification

The 3 months correlation between Mediaco and Auddia is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mediaco Holding and Auddia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auddia Inc and Mediaco Holding 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 Mediaco Holding are associated (or correlated) with Auddia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auddia Inc has no effect on the direction of Mediaco Holding i.e., Mediaco Holding and Auddia go up and down completely randomly.

Pair Corralation between Mediaco Holding and Auddia

Given the investment horizon of 90 days Mediaco Holding is expected to generate 1.81 times more return on investment than Auddia. However, Mediaco Holding is 1.81 times more volatile than Auddia Inc. It trades about 0.06 of its potential returns per unit of risk. Auddia Inc is currently generating about 0.02 per unit of risk. If you would invest  111.00  in Mediaco Holding on October 10, 2024 and sell it today you would earn a total of  11.00  from holding Mediaco Holding or generate 9.91% return on investment over 90 days.

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

Mediaco Holding  vs.  Auddia Inc

Mediaco Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mediaco Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating forward indicators, Mediaco Holding sustained solid returns over the last few months and may actually be approaching a breakup point.

Auddia Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Auddia Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Auddia is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Mediaco Holding and Auddia

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

The idea behind Mediaco Holding and Auddia Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.