Correlation Between MediaAlpha and Baidu
Can any of the company-specific risk be diversified away by investing in both MediaAlpha and Baidu 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 Baidu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaAlpha and Baidu Inc, you can compare the effects of market volatilities on MediaAlpha and Baidu 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 Baidu. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaAlpha and Baidu.
Diversification Opportunities for MediaAlpha and Baidu
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaAlpha and Baidu is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MediaAlpha and Baidu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baidu Inc 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 Baidu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baidu Inc has no effect on the direction of MediaAlpha i.e., MediaAlpha and Baidu go up and down completely randomly.
Pair Corralation between MediaAlpha and Baidu
Considering the 90-day investment horizon MediaAlpha is expected to generate 1.6 times more return on investment than Baidu. However, MediaAlpha is 1.6 times more volatile than Baidu Inc. It trades about 0.03 of its potential returns per unit of risk. Baidu Inc is currently generating about -0.09 per unit of risk. If you would invest 2,011 in MediaAlpha on February 1, 2024 and sell it today you would earn a total of 14.00 from holding MediaAlpha or generate 0.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MediaAlpha vs. Baidu Inc
Performance |
Timeline |
MediaAlpha |
Baidu Inc |
MediaAlpha and Baidu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MediaAlpha and Baidu
The main advantage of trading using opposite MediaAlpha and Baidu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaAlpha position performs unexpectedly, Baidu 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 Baidu will offset losses from the drop in Baidu's long position.MediaAlpha vs. Digital Ally | MediaAlpha vs. Onfolio Holdings | MediaAlpha vs. Zhihu Inc ADR | MediaAlpha vs. Asset Entities Class |
Baidu vs. Digital Ally | Baidu vs. Onfolio Holdings | Baidu vs. Zhihu Inc ADR | Baidu vs. Asset Entities Class |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |