Correlation Between Baosheng Media and Mirriad Advertising
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Mirriad Advertising 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 Mirriad Advertising 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 Mirriad Advertising plc, you can compare the effects of market volatilities on Baosheng Media and Mirriad Advertising 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 Mirriad Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Mirriad Advertising.
Diversification Opportunities for Baosheng Media and Mirriad Advertising
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Baosheng and Mirriad is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Mirriad Advertising plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirriad Advertising plc 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 Mirriad Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirriad Advertising plc has no effect on the direction of Baosheng Media i.e., Baosheng Media and Mirriad Advertising go up and down completely randomly.
Pair Corralation between Baosheng Media and Mirriad Advertising
Given the investment horizon of 90 days Baosheng Media Group is expected to generate 0.94 times more return on investment than Mirriad Advertising. However, Baosheng Media Group is 1.07 times less risky than Mirriad Advertising. It trades about 0.0 of its potential returns per unit of risk. Mirriad Advertising plc is currently generating about -0.13 per unit of risk. If you would invest 239.00 in Baosheng Media Group on September 3, 2024 and sell it today you would lose (47.00) from holding Baosheng Media Group or give up 19.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Baosheng Media Group vs. Mirriad Advertising plc
Performance |
| Timeline |
| Baosheng Media Group |
| Mirriad Advertising plc |
Baosheng Media and Mirriad Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Mirriad Advertising
The main advantage of trading using opposite Baosheng Media and Mirriad Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Mirriad Advertising 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 Mirriad Advertising will offset losses from the drop in Mirriad Advertising'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 |
| Mirriad Advertising vs. INEO Tech Corp | Mirriad Advertising vs. Marchex | Mirriad Advertising vs. Snipp Interactive | Mirriad Advertising vs. Emerald Expositions Events |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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