Correlation Between Troika Media and Mirriad Advertising

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

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

Diversification Opportunities for Troika Media and Mirriad Advertising

0.73

Correlation Coefficient

Troika Media  Mirriad Advertising

Poor diversification

The 3 months correlation between Troika and Mirriad is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Troika Media Group and Mirriad Advertising plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirriad Advertising plc and Troika Media 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 Troika Media Group are associated (or correlated) with Mirriad Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirriad Advertising plc has no effect on the direction of Troika Media i.e., Troika Media and Mirriad Advertising go up and down completely randomly.

Pair Corralation between Troika Media and Mirriad Advertising

If you would invest  3.50  in Troika Media Group on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Troika Media Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Troika Media Group  vs.  Mirriad Advertising plc

Troika Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Troika Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Troika Media is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Mirriad Advertising plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mirriad Advertising plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Troika Media and Mirriad Advertising

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

The idea behind Troika Media Group and Mirriad Advertising plc 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.