Correlation Between Bilibili and GDEV
Can any of the company-specific risk be diversified away by investing in both Bilibili and GDEV 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 GDEV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and GDEV Inc, you can compare the effects of market volatilities on Bilibili and GDEV 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 GDEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and GDEV.
Diversification Opportunities for Bilibili and GDEV
Very weak diversification
The 3 months correlation between Bilibili and GDEV is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and GDEV Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GDEV Inc 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 GDEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GDEV Inc has no effect on the direction of Bilibili i.e., Bilibili and GDEV go up and down completely randomly.
Pair Corralation between Bilibili and GDEV
Assuming the 90 days horizon Bilibili is expected to generate 1.05 times more return on investment than GDEV. However, Bilibili is 1.05 times more volatile than GDEV Inc. It trades about 0.02 of its potential returns per unit of risk. GDEV Inc is currently generating about -0.03 per unit of risk. If you would invest 2,265 in Bilibili on August 31, 2024 and sell it today you would lose (181.00) from holding Bilibili or give up 7.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bilibili vs. GDEV Inc
Performance |
| Timeline |
| Bilibili |
| GDEV Inc |
Bilibili and GDEV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and GDEV
The main advantage of trading using opposite Bilibili and GDEV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, GDEV 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 GDEV will offset losses from the drop in GDEV's long position.| Bilibili vs. Capcom Co Ltd | Bilibili vs. CD Projekt SA | Bilibili vs. Sega Sammy Holdings | Bilibili vs. Playtika Holding Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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