Correlation Between Mediaco Holding and Cuentas

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

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

Diversification Opportunities for Mediaco Holding and Cuentas

-0.11

Correlation Coefficient

Mediaco Holding  Cuentas

Good diversification

The 3 months correlation between Mediaco and Cuentas is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mediaco Holding and Cuentas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuentas and Mediaco Holding 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 Mediaco Holding are associated (or correlated) with Cuentas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuentas has no effect on the direction of Mediaco Holding i.e., Mediaco Holding and Cuentas go up and down completely randomly.

Pair Corralation between Mediaco Holding and Cuentas

If you would invest  152.00  in Mediaco Holding on September 13, 2024 and sell it today you would lose (18.00) from holding Mediaco Holding or give up 11.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.68%
Values	Daily Returns

Mediaco Holding  vs.  Cuentas

Mediaco Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mediaco Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain somewhat 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.

Cuentas

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cuentas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Cuentas is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Mediaco Holding and Cuentas

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

The idea behind Mediaco Holding and Cuentas 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.

Check out your portfolio center.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.