Correlation Between Bilibili and Genfit
Can any of the company-specific risk be diversified away by investing in both Bilibili and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and Genfit, you can compare the effects of market volatilities on Bilibili and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and Genfit.
Diversification Opportunities for Bilibili and Genfit
Poor diversification
The 3 months correlation between Bilibili and Genfit is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Bilibili i.e., Bilibili and Genfit go up and down completely randomly.
Pair Corralation between Bilibili and Genfit
Given the investment horizon of 90 days Bilibili is expected to generate 0.9 times more return on investment than Genfit. However, Bilibili is 1.11 times less risky than Genfit. It trades about -0.03 of its potential returns per unit of risk. Genfit is currently generating about -0.03 per unit of risk. If you would invest 1,713 in Bilibili on November 3, 2024 and sell it today you would lose (38.50) from holding Bilibili or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilibili vs. Genfit
Performance |
| Timeline |
| Bilibili |
| Genfit |
Bilibili and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and Genfit
The main advantage of trading using opposite Bilibili and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Bilibili vs. Electronic Arts | Bilibili vs. Take Two Interactive Software | Bilibili vs. SohuCom | Bilibili vs. Skillz Platform |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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