Correlation Between INTER CARS and Bilibili
Can any of the company-specific risk be diversified away by investing in both INTER CARS and Bilibili 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 INTER CARS and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and Bilibili, you can compare the effects of market volatilities on INTER CARS and Bilibili 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 INTER CARS with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Bilibili.
Diversification Opportunities for INTER CARS and Bilibili
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTER and Bilibili is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and INTER CARS 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 INTER CARS SA are associated (or correlated) with Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of INTER CARS i.e., INTER CARS and Bilibili go up and down completely randomly.
Pair Corralation between INTER CARS and Bilibili
Assuming the 90 days horizon INTER CARS is expected to generate 1.63 times less return on investment than Bilibili. But when comparing it to its historical volatility, INTER CARS SA is 2.39 times less risky than Bilibili. It trades about 0.08 of its potential returns per unit of risk. Bilibili is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Bilibili on November 4, 2024 and sell it today you would earn a total of 260.00 from holding Bilibili or generate 18.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. Bilibili
Performance |
| Timeline |
| INTER CARS SA |
| Bilibili |
INTER CARS and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Bilibili
The main advantage of trading using opposite INTER CARS and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.| INTER CARS vs. CanSino Biologics | INTER CARS vs. Cass Information Systems | INTER CARS vs. National Retail Properties | INTER CARS vs. CANON MARKETING JP |
| Bilibili vs. MCEWEN MINING INC | Bilibili vs. Khiron Life Sciences | Bilibili vs. De Grey Mining | Bilibili vs. COSMOSTEEL HLDGS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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