Correlation Between Comscore and MediaAlpha

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

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

Diversification Opportunities for Comscore and MediaAlpha

-0.17

Correlation Coefficient

Comscore  MediaAlpha

Good diversification

The 3 months correlation between Comscore and MediaAlpha is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Comscore and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Comscore 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 Comscore are associated (or correlated) with MediaAlpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaAlpha has no effect on the direction of Comscore i.e., Comscore and MediaAlpha go up and down completely randomly.

Pair Corralation between Comscore and MediaAlpha

Given the investment horizon of 90 days Comscore is expected to generate 1.32 times more return on investment than MediaAlpha. However, Comscore is 1.32 times more volatile than MediaAlpha. It trades about 0.07 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.07 per unit of risk. If you would invest  701.00  in Comscore on September 2, 2024 and sell it today you would earn a total of  137.00  from holding Comscore or generate 19.54% return on investment over 90 days.

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

Comscore  vs.  MediaAlpha

Comscore

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Comscore are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Comscore reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Comscore and MediaAlpha

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

The idea behind Comscore and MediaAlpha 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.