Correlation Between Baosheng Media and Troika Media
Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Troika Media 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 Troika Media 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 Troika Media Group, you can compare the effects of market volatilities on Baosheng Media and Troika Media 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 Troika Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Troika Media.
Diversification Opportunities for Baosheng Media and Troika Media
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Baosheng and Troika is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Troika Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troika Media Group 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 Troika Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troika Media Group has no effect on the direction of Baosheng Media i.e., Baosheng Media and Troika Media go up and down completely randomly.
Pair Corralation between Baosheng Media and Troika Media
If you would invest 3.50 in Troika Media Group on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Troika Media Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Baosheng Media Group vs. Troika Media Group
Performance |
| Timeline |
| Baosheng Media Group |
| Troika Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Baosheng Media and Troika Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baosheng Media and Troika Media
The main advantage of trading using opposite Baosheng Media and Troika Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Troika Media 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 Troika Media will offset losses from the drop in Troika Media'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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