Correlation Between ANGI Homeservices and MediaAlpha

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

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

Diversification Opportunities for ANGI Homeservices and MediaAlpha

0.61

Correlation Coefficient

ANGI Homeservices  MediaAlpha

Poor diversification

The 3 months correlation between ANGI and MediaAlpha is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and MediaAlpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaAlpha and ANGI Homeservices 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 ANGI Homeservices 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 ANGI Homeservices i.e., ANGI Homeservices and MediaAlpha go up and down completely randomly.

Pair Corralation between ANGI Homeservices and MediaAlpha

Given the investment horizon of 90 days ANGI Homeservices is expected to generate 2.43 times more return on investment than MediaAlpha. However, ANGI Homeservices is 2.43 times more volatile than MediaAlpha. It trades about 0.14 of its potential returns per unit of risk. MediaAlpha is currently generating about 0.05 per unit of risk. If you would invest  1,125  in ANGI Homeservices on May 6, 2025 and sell it today you would earn a total of  504.00  from holding ANGI Homeservices or generate 44.8% return on investment over 90 days.

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

ANGI Homeservices  vs.  MediaAlpha

ANGI Homeservices

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ANGI Homeservices are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, ANGI Homeservices demonstrated solid returns over the last few months and may actually be approaching a breakup point.

MediaAlpha

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MediaAlpha are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, MediaAlpha may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ANGI Homeservices and MediaAlpha

The main advantage of trading using opposite ANGI Homeservices and MediaAlpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices 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 ANGI Homeservices 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.