Correlation Between Upexi and MediaAlpha

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

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

Diversification Opportunities for Upexi and MediaAlpha

-0.24

Correlation Coefficient

Upexi  MediaAlpha

Very good diversification

The 3 months correlation between Upexi and MediaAlpha is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Upexi Inc and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and Upexi 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 Upexi Inc 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 Upexi i.e., Upexi and MediaAlpha go up and down completely randomly.

Pair Corralation between Upexi and MediaAlpha

Given the investment horizon of 90 days Upexi Inc is expected to generate 4.75 times more return on investment than MediaAlpha. However, Upexi is 4.75 times more volatile than MediaAlpha. It trades about 0.08 of its potential returns per unit of risk. MediaAlpha is currently generating about -0.11 per unit of risk. If you would invest  394.00  in Upexi Inc on September 12, 2024 and sell it today you would earn a total of  93.00  from holding Upexi Inc or generate 23.6% return on investment over 90 days.

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

Upexi Inc  vs.  MediaAlpha

Upexi Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Upexi Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Upexi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 Upexi and MediaAlpha

The main advantage of trading using opposite Upexi and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upexi 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 Upexi Inc 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 Commodity Directory module to find actively traded commodities issued by global exchanges.