Correlation Between ZW Data and Baosheng Media
Can any of the company-specific risk be diversified away by investing in both ZW Data 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 ZW Data and Baosheng Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZW Data Action and Baosheng Media Group, you can compare the effects of market volatilities on ZW Data 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 ZW Data with a short position of Baosheng Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZW Data and Baosheng Media.
Diversification Opportunities for ZW Data and Baosheng Media
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNET and Baosheng is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding ZW Data Action 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 ZW Data 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 ZW Data Action 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 ZW Data i.e., ZW Data and Baosheng Media go up and down completely randomly.
Pair Corralation between ZW Data and Baosheng Media
Given the investment horizon of 90 days ZW Data Action is expected to under-perform the Baosheng Media. But the stock apears to be less risky and, when comparing its historical volatility, ZW Data Action is 1.59 times less risky than Baosheng Media. The stock trades about -0.09 of its potential returns per unit of risk. The Baosheng Media Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 386.00 in Baosheng Media Group on November 8, 2024 and sell it today you would lose (17.00) from holding Baosheng Media Group or give up 4.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZW Data Action vs. Baosheng Media Group
Performance |
| Timeline |
| ZW Data Action |
| Baosheng Media Group |
ZW Data and Baosheng Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZW Data and Baosheng Media
The main advantage of trading using opposite ZW Data and Baosheng Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZW Data 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.| ZW Data vs. Fluent Inc | ZW Data vs. MGO Global Common | ZW Data vs. QuinStreet | ZW Data vs. Direct Digital Holdings |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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