Correlation Between Bilibili and GameSquare Holdings
Can any of the company-specific risk be diversified away by investing in both Bilibili and GameSquare Holdings 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 GameSquare Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and GameSquare Holdings, you can compare the effects of market volatilities on Bilibili and GameSquare Holdings 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 GameSquare Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and GameSquare Holdings.
Diversification Opportunities for Bilibili and GameSquare Holdings
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bilibili and GameSquare is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and GameSquare Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameSquare Holdings 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 GameSquare Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameSquare Holdings has no effect on the direction of Bilibili i.e., Bilibili and GameSquare Holdings go up and down completely randomly.
Pair Corralation between Bilibili and GameSquare Holdings
Given the investment horizon of 90 days Bilibili is expected to generate 0.67 times more return on investment than GameSquare Holdings. However, Bilibili is 1.48 times less risky than GameSquare Holdings. It trades about 0.01 of its potential returns per unit of risk. GameSquare Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,150 in Bilibili on November 9, 2024 and sell it today you would lose (344.00) from holding Bilibili or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilibili vs. GameSquare Holdings
Performance |
| Timeline |
| Bilibili |
| GameSquare Holdings |
Bilibili and GameSquare Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and GameSquare Holdings
The main advantage of trading using opposite Bilibili and GameSquare Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, GameSquare Holdings 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 GameSquare Holdings will offset losses from the drop in GameSquare Holdings' long position.| Bilibili vs. Electronic Arts | Bilibili vs. Take Two Interactive Software | Bilibili vs. SohuCom | Bilibili vs. Skillz Platform |
| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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