Correlation Between MoneyHero Limited and MediaAlpha

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

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

Diversification Opportunities for MoneyHero Limited and MediaAlpha

-0.4

Correlation Coefficient

MoneyHero Limited  MediaAlpha

Very good diversification

The 3 months correlation between MoneyHero and MediaAlpha is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MoneyHero Limited Class and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and MoneyHero Limited 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 MoneyHero Limited Class 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 MoneyHero Limited i.e., MoneyHero Limited and MediaAlpha go up and down completely randomly.

Pair Corralation between MoneyHero Limited and MediaAlpha

Considering the 90-day investment horizon MoneyHero Limited Class is expected to generate 0.92 times more return on investment than MediaAlpha. However, MoneyHero Limited Class is 1.09 times less risky than MediaAlpha. It trades about 0.02 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.07 per unit of risk. If you would invest  115.00  in MoneyHero Limited Class on September 2, 2024 and sell it today you would earn a total of  1.00  from holding MoneyHero Limited Class or generate 0.87% return on investment over 90 days.

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

MoneyHero Limited Class  vs.  MediaAlpha

MoneyHero Limited Class

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MoneyHero Limited Class are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, MoneyHero Limited may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 MoneyHero Limited and MediaAlpha

The main advantage of trading using opposite MoneyHero Limited and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MoneyHero Limited 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 MoneyHero Limited Class 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.