Correlation Between Baosheng Media and Mobiquity Technologies

Can any of the company-specific risk be diversified away by investing in both Baosheng Media and Mobiquity Technologies 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 Mobiquity Technologies 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 Mobiquity Technologies, you can compare the effects of market volatilities on Baosheng Media and Mobiquity Technologies 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 Mobiquity Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baosheng Media and Mobiquity Technologies.

Diversification Opportunities for Baosheng Media and Mobiquity Technologies

0.48

Correlation Coefficient

Baosheng Media  Mobiquity Technologies

Very weak diversification

The 3 months correlation between Baosheng and Mobiquity is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Baosheng Media Group and Mobiquity Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobiquity Technologies 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 Mobiquity Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobiquity Technologies has no effect on the direction of Baosheng Media i.e., Baosheng Media and Mobiquity Technologies go up and down completely randomly.

Pair Corralation between Baosheng Media and Mobiquity Technologies

If you would invest  186.00  in Baosheng Media Group on September 2, 2024 and sell it today you would earn a total of  6.00  from holding Baosheng Media Group or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Baosheng Media Group  vs.  Mobiquity Technologies

Baosheng Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baosheng Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Mobiquity Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mobiquity Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Mobiquity Technologies is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Baosheng Media and Mobiquity Technologies

The main advantage of trading using opposite Baosheng Media and Mobiquity Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baosheng Media position performs unexpectedly, Mobiquity Technologies 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 Mobiquity Technologies will offset losses from the drop in Mobiquity Technologies' long position.

The idea behind Baosheng Media Group and Mobiquity Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.