Correlation Between Baosheng Media and Impact Fusion
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Impact Fusion 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 Impact Fusion 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 Impact Fusion International, you can compare the effects of market volatilities on Baosheng Media and Impact Fusion 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 Impact Fusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Impact Fusion.
Diversification Opportunities for Baosheng Media and Impact Fusion
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baosheng and Impact is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Impact Fusion International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Fusion Intern 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 Impact Fusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Fusion Intern has no effect on the direction of Baosheng Media i.e., Baosheng Media and Impact Fusion go up and down completely randomly.
Pair Corralation between Baosheng Media and Impact Fusion
Given the investment horizon of 90 days Baosheng Media Group is expected to generate 3.9 times more return on investment than Impact Fusion. However, Baosheng Media is 3.9 times more volatile than Impact Fusion International. It trades about 0.05 of its potential returns per unit of risk. Impact Fusion International is currently generating about -0.06 per unit of risk. If you would invest 342.00 in Baosheng Media Group on November 9, 2024 and sell it today you would earn a total of 27.00 from holding Baosheng Media Group or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Baosheng Media Group vs. Impact Fusion International
Performance |
| Timeline |
| Baosheng Media Group |
| Impact Fusion Intern |
Baosheng Media and Impact Fusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Impact Fusion
The main advantage of trading using opposite Baosheng Media and Impact Fusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Impact Fusion 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 Impact Fusion will offset losses from the drop in Impact Fusion'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 |
| Impact Fusion vs. Digital Brand Media | Impact Fusion vs. Beyond Commerce | Impact Fusion vs. Glory Star New | Impact Fusion vs. Baosheng Media Group |
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.
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