Does the Maturity of the Futures Contract Affect the Magnitude of Basis Risk?

Yes, the maturity of the futures contract significantly affects the magnitude of basis risk. Generally, longer-maturity contracts exhibit greater basis risk than shorter-maturity contracts.

This is because there is more time for unforeseen events, changes in the cost of carry, or shifts in market expectations to cause the spot and futures prices to diverge, leading to greater uncertainty in the basis.