Correlation Between Cimpress and Baosheng Media
Can any of the company-specific risk be diversified away by investing in both Cimpress 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 Cimpress and Baosheng Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimpress NV and Baosheng Media Group, you can compare the effects of market volatilities on Cimpress 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 Cimpress with a short position of Baosheng Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimpress and Baosheng Media.
Diversification Opportunities for Cimpress and Baosheng Media
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cimpress and Baosheng is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Cimpress NV 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 Cimpress 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 Cimpress NV 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 Cimpress i.e., Cimpress and Baosheng Media go up and down completely randomly.
Pair Corralation between Cimpress and Baosheng Media
Given the investment horizon of 90 days Cimpress NV is expected to generate 0.73 times more return on investment than Baosheng Media. However, Cimpress NV is 1.36 times less risky than Baosheng Media. It trades about 0.09 of its potential returns per unit of risk. Baosheng Media Group is currently generating about -0.1 per unit of risk. If you would invest 7,713 in Cimpress NV on August 27, 2024 and sell it today you would earn a total of 420.00 from holding Cimpress NV or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimpress NV vs. Baosheng Media Group
Performance |
| Timeline |
| Cimpress NV |
| Baosheng Media Group |
Cimpress and Baosheng Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimpress and Baosheng Media
The main advantage of trading using opposite Cimpress and Baosheng Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimpress 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.| Cimpress vs. Innovid Corp | Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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