Correlation Between Bilibili and GungHo Online
Can any of the company-specific risk be diversified away by investing in both Bilibili and GungHo Online 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 Bilibili and GungHo Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and GungHo Online Entertainment, you can compare the effects of market volatilities on Bilibili and GungHo Online 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 Bilibili with a short position of GungHo Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and GungHo Online.
Diversification Opportunities for Bilibili and GungHo Online
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bilibili and GungHo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and GungHo Online Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GungHo Online Entert and Bilibili 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 Bilibili are associated (or correlated) with GungHo Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GungHo Online Entert has no effect on the direction of Bilibili i.e., Bilibili and GungHo Online go up and down completely randomly.
Pair Corralation between Bilibili and GungHo Online
Assuming the 90 days trading horizon Bilibili is expected to generate 2.43 times more return on investment than GungHo Online. However, Bilibili is 2.43 times more volatile than GungHo Online Entertainment. It trades about 0.06 of its potential returns per unit of risk. GungHo Online Entertainment is currently generating about -0.02 per unit of risk. If you would invest 1,650 in Bilibili on August 25, 2024 and sell it today you would earn a total of 140.00 from holding Bilibili or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilibili vs. GungHo Online Entertainment
Performance |
| Timeline |
| Bilibili |
| GungHo Online Entert |
Bilibili and GungHo Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and GungHo Online
The main advantage of trading using opposite Bilibili and GungHo Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, GungHo Online 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 GungHo Online will offset losses from the drop in GungHo Online's long position.| Bilibili vs. APPLIED MATERIALS | Bilibili vs. Universal Display | Bilibili vs. VULCAN MATERIALS | Bilibili vs. The Yokohama Rubber |
| GungHo Online vs. Sea Limited | GungHo Online vs. NEXON Co | GungHo Online vs. Take Two Interactive Software | GungHo Online vs. Bilibili |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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