Correlation Between MediaAlpha and Thryv Holdings

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Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Thryv Holdings 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 MediaAlpha and Thryv Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Thryv Holdings, you can compare the effects of market volatilities on MediaAlpha and Thryv Holdings 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 MediaAlpha with a short position of Thryv Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Thryv Holdings.

Diversification Opportunities for MediaAlpha and Thryv Holdings

0.74
  Correlation Coefficient

Poor diversification

The 3 months correlation between MediaAlpha and Thryv is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Thryv Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thryv Holdings and MediaAlpha 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 MediaAlpha are associated (or correlated) with Thryv Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thryv Holdings has no effect on the direction of MediaAlpha i.e., MediaAlpha and Thryv Holdings go up and down completely randomly.

Pair Corralation between MediaAlpha and Thryv Holdings

Considering the 90-day investment horizon MediaAlpha is expected to under-perform the Thryv Holdings. In addition to that, MediaAlpha is 1.34 times more volatile than Thryv Holdings. It trades about -0.07 of its total potential returns per unit of risk. Thryv Holdings is currently generating about -0.02 per unit of volatility. If you would invest  1,810  in Thryv Holdings on August 31, 2024 and sell it today you would lose (171.00) from holding Thryv Holdings or give up 9.45% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

MediaAlpha  vs.  Thryv Holdings

 Performance 
       Timeline  
MediaAlpha 

Risk-Adjusted Performance

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Weak
 
Strong
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 December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
Thryv Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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 fairly strong basic indicators, Thryv Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

MediaAlpha and Thryv Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MediaAlpha and Thryv Holdings

The main advantage of trading using opposite MediaAlpha and Thryv Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Thryv Holdings 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 Thryv Holdings will offset losses from the drop in Thryv Holdings' long position.
The idea behind MediaAlpha and Thryv Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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