Correlation Between Baosheng Media and Star Fashion
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Star Fashion 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 Star Fashion 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 Star Fashion Culture, you can compare the effects of market volatilities on Baosheng Media and Star Fashion 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 Star Fashion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Star Fashion.
Diversification Opportunities for Baosheng Media and Star Fashion
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baosheng and Star is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Star Fashion Culture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Fashion Culture 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 Star Fashion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Fashion Culture has no effect on the direction of Baosheng Media i.e., Baosheng Media and Star Fashion go up and down completely randomly.
Pair Corralation between Baosheng Media and Star Fashion
If you would invest 0.00 in Star Fashion Culture on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Star Fashion Culture or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Baosheng Media Group vs. Star Fashion Culture
Performance |
| Timeline |
| Baosheng Media Group |
| Star Fashion Culture |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Baosheng Media and Star Fashion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Star Fashion
The main advantage of trading using opposite Baosheng Media and Star Fashion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Star Fashion 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 Star Fashion will offset losses from the drop in Star Fashion's long position.| Baosheng Media vs. MGO Global Common | Baosheng Media vs. National CineMedia | Baosheng Media vs. Impact Fusion International | Baosheng Media vs. Steel Connect |
| Star Fashion vs. Cabo Drilling Corp | Star Fashion vs. Delta Air Lines | Star Fashion vs. Transocean | Star Fashion vs. Aldel Financial II |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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