Correlation Between CMG Holdings and Baosheng Media
Can any of the company-specific risk be diversified away by investing in both CMG Holdings and Baosheng 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 CMG Holdings and Baosheng Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CMG Holdings Group and Baosheng Media Group, you can compare the effects of market volatilities on CMG Holdings and Baosheng 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 CMG Holdings with a short position of Baosheng Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMG Holdings and Baosheng Media.
Diversification Opportunities for CMG Holdings and Baosheng Media
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CMG and Baosheng is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CMG Holdings Group and Baosheng Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baosheng Media Group and CMG Holdings 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 CMG Holdings Group are associated (or correlated) with Baosheng Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baosheng Media Group has no effect on the direction of CMG Holdings i.e., CMG Holdings and Baosheng Media go up and down completely randomly.
Pair Corralation between CMG Holdings and Baosheng Media
Given the investment horizon of 90 days CMG Holdings Group is expected to generate 1.99 times more return on investment than Baosheng Media. However, CMG Holdings is 1.99 times more volatile than Baosheng Media Group. It trades about 0.1 of its potential returns per unit of risk. Baosheng Media Group is currently generating about -0.05 per unit of risk. If you would invest 0.16 in CMG Holdings Group on August 31, 2024 and sell it today you would earn a total of 0.02 from holding CMG Holdings Group or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CMG Holdings Group vs. Baosheng Media Group
Performance |
| Timeline |
| CMG Holdings Group |
| Baosheng Media Group |
CMG Holdings and Baosheng Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMG Holdings and Baosheng Media
The main advantage of trading using opposite CMG Holdings and Baosheng Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMG Holdings position performs unexpectedly, Baosheng 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 Baosheng Media will offset losses from the drop in Baosheng Media's long position.| CMG Holdings vs. Tautachrome | CMG Holdings vs. VNUE Inc | CMG Holdings vs. South Beach Spirits | CMG Holdings vs. North Bay Resources |
| Baosheng Media vs. MGO Global Common | Baosheng Media vs. National CineMedia | Baosheng Media vs. Glory Star New | Baosheng Media vs. Impact Fusion International |
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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