Correlation Between Baosheng Media and Eason Technology
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Eason Technology 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 Baosheng Media and Eason Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baosheng Media Group and Eason Technology Limited, you can compare the effects of market volatilities on Baosheng Media and Eason Technology 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 Baosheng Media with a short position of Eason Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Eason Technology.
Diversification Opportunities for Baosheng Media and Eason Technology
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Baosheng and Eason is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Eason Technology Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eason Technology and Baosheng Media 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 Baosheng Media Group are associated (or correlated) with Eason Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eason Technology has no effect on the direction of Baosheng Media i.e., Baosheng Media and Eason Technology go up and down completely randomly.
Pair Corralation between Baosheng Media and Eason Technology
Given the investment horizon of 90 days Baosheng Media is expected to generate 15.17 times less return on investment than Eason Technology. But when comparing it to its historical volatility, Baosheng Media Group is 3.11 times less risky than Eason Technology. It trades about 0.05 of its potential returns per unit of risk. Eason Technology Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,900 in Eason Technology Limited on November 9, 2024 and sell it today you would lose (59.00) from holding Eason Technology Limited or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.03% |
| Values | Daily Returns |
Baosheng Media Group vs. Eason Technology Limited
Performance |
| Timeline |
| Baosheng Media Group |
| Eason Technology |
Baosheng Media and Eason Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Eason Technology
The main advantage of trading using opposite Baosheng Media and Eason Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Eason Technology 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 Eason Technology will offset losses from the drop in Eason Technology's long position.| Baosheng Media vs. MGO Global Common | Baosheng Media vs. National CineMedia | Baosheng Media vs. Glory Star New | Baosheng Media vs. Impact Fusion International |
| Eason Technology vs. MDJM | Eason Technology vs. ReTo Eco Solutions | Eason Technology vs. Four Seasons Education | Eason Technology vs. Mercurity Fintech Holding |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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