Correlation Between Baosheng Media and Magnite
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Magnite 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 Magnite 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 Magnite, you can compare the effects of market volatilities on Baosheng Media and Magnite 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 Magnite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Magnite.
Diversification Opportunities for Baosheng Media and Magnite
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baosheng and Magnite is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Magnite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnite 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 Magnite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnite has no effect on the direction of Baosheng Media i.e., Baosheng Media and Magnite go up and down completely randomly.
Pair Corralation between Baosheng Media and Magnite
Given the investment horizon of 90 days Baosheng Media Group is expected to under-perform the Magnite. In addition to that, Baosheng Media is 1.85 times more volatile than Magnite. It trades about -0.15 of its total potential returns per unit of risk. Magnite is currently generating about 0.06 per unit of volatility. If you would invest 1,630 in Magnite on September 13, 2024 and sell it today you would earn a total of 44.00 from holding Magnite or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baosheng Media Group vs. Magnite
Performance |
| Timeline |
| Baosheng Media Group |
| Magnite |
Baosheng Media and Magnite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Magnite
The main advantage of trading using opposite Baosheng Media and Magnite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Magnite 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 Magnite will offset losses from the drop in Magnite'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 |
| Magnite vs. Mirriad Advertising plc | Magnite vs. INEO Tech Corp | Magnite vs. Kidoz Inc | Magnite vs. Marchex |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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