Correlation Between Bilibili and GD Culture
Can any of the company-specific risk be diversified away by investing in both Bilibili and GD Culture 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 GD Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and GD Culture Group, you can compare the effects of market volatilities on Bilibili and GD Culture 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 GD Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and GD Culture.
Diversification Opportunities for Bilibili and GD Culture
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bilibili and GDC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and GD Culture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Culture Group 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 GD Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Culture Group has no effect on the direction of Bilibili i.e., Bilibili and GD Culture go up and down completely randomly.
Pair Corralation between Bilibili and GD Culture
Given the investment horizon of 90 days Bilibili is expected to generate 0.71 times more return on investment than GD Culture. However, Bilibili is 1.41 times less risky than GD Culture. It trades about 0.13 of its potential returns per unit of risk. GD Culture Group is currently generating about -0.45 per unit of risk. If you would invest 1,678 in Bilibili on November 9, 2024 and sell it today you would earn a total of 128.00 from holding Bilibili or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilibili vs. GD Culture Group
Performance |
| Timeline |
| Bilibili |
| GD Culture Group |
Bilibili and GD Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and GD Culture
The main advantage of trading using opposite Bilibili and GD Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, GD Culture 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 GD Culture will offset losses from the drop in GD Culture's long position.| Bilibili vs. Electronic Arts | Bilibili vs. Take Two Interactive Software | Bilibili vs. SohuCom | Bilibili vs. Skillz Platform |
| GD Culture vs. Blue Hat Interactive | GD Culture vs. Playstudios | GD Culture vs. Motorsport Gaming Us | GD Culture vs. Alpha Esports Tech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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