Correlation Between Ziff Davis and Baosheng Media
Can any of the company-specific risk be diversified away by investing in both Ziff Davis 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 Ziff Davis and Baosheng Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ziff Davis and Baosheng Media Group, you can compare the effects of market volatilities on Ziff Davis 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 Ziff Davis with a short position of Baosheng Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziff Davis and Baosheng Media.
Diversification Opportunities for Ziff Davis and Baosheng Media
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ziff and Baosheng is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ziff Davis 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 Ziff Davis 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 Ziff Davis 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 Ziff Davis i.e., Ziff Davis and Baosheng Media go up and down completely randomly.
Pair Corralation between Ziff Davis and Baosheng Media
Allowing for the 90-day total investment horizon Ziff Davis is expected to generate 0.88 times more return on investment than Baosheng Media. However, Ziff Davis is 1.14 times less risky than Baosheng Media. It trades about 0.27 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 4,742 in Ziff Davis on August 27, 2024 and sell it today you would earn a total of 1,082 from holding Ziff Davis or generate 22.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziff Davis vs. Baosheng Media Group
Performance |
| Timeline |
| Ziff Davis |
| Baosheng Media Group |
Ziff Davis and Baosheng Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziff Davis and Baosheng Media
The main advantage of trading using opposite Ziff Davis and Baosheng Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziff Davis 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.| Ziff Davis vs. Interpublic Group of | Ziff Davis vs. Criteo Sa | Ziff Davis vs. WPP PLC ADR | Ziff Davis vs. Integral Ad Science |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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