Correlation Between Starbox Group and MediaAlpha

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

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

Diversification Opportunities for Starbox Group and MediaAlpha

0.22

Correlation Coefficient

Starbox Group  MediaAlpha

Modest diversification

The 3 months correlation between Starbox and MediaAlpha is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Starbox Group Holdings and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Starbox Group 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 Starbox Group Holdings 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 Starbox Group i.e., Starbox Group and MediaAlpha go up and down completely randomly.

Pair Corralation between Starbox Group and MediaAlpha

Given the investment horizon of 90 days Starbox Group Holdings is expected to generate 17.11 times more return on investment than MediaAlpha. However, Starbox Group is 17.11 times more volatile than MediaAlpha. It trades about 0.04 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.05 per unit of risk. If you would invest  164.00  in Starbox Group Holdings on December 30, 2024 and sell it today you would lose (146.00) from holding Starbox Group Holdings or give up 89.02% of portfolio value over 90 days.

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

Starbox Group Holdings  vs.  MediaAlpha

Starbox Group Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Starbox Group Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental drivers, Starbox Group showed solid returns over the last few months and may actually be approaching a breakup point.

MediaAlpha

Risk-Adjusted Performance

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 latest inconsistent performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Starbox Group and MediaAlpha

The main advantage of trading using opposite Starbox Group and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbox Group 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 Starbox Group Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.