Correlation Between Thryv Holdings and MediaAlpha

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

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

Diversification Opportunities for Thryv Holdings and MediaAlpha

0.74

Correlation Coefficient

Thryv Holdings  MediaAlpha

Poor diversification

The 3 months correlation between Thryv and MediaAlpha is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Thryv Holdings and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Thryv Holdings 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 Thryv 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 Thryv Holdings i.e., Thryv Holdings and MediaAlpha go up and down completely randomly.

Pair Corralation between Thryv Holdings and MediaAlpha

Given the investment horizon of 90 days Thryv Holdings is expected to generate 0.75 times more return on investment than MediaAlpha. However, Thryv Holdings is 1.34 times less risky than MediaAlpha. It trades about -0.04 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.07 per unit of risk. If you would invest  1,810  in Thryv Holdings on September 2, 2024 and sell it today you would lose (228.00) from holding Thryv Holdings or give up 12.6% of portfolio value over 90 days.

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

Thryv Holdings  vs.  MediaAlpha

Thryv Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thryv Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting 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.

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 Thryv Holdings and MediaAlpha

The main advantage of trading using opposite Thryv Holdings and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thryv Holdings 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 Thryv 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.