Correlation Between Bilibili and CD Projekt
Can any of the company-specific risk be diversified away by investing in both Bilibili and CD Projekt 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 CD Projekt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and CD Projekt SA, you can compare the effects of market volatilities on Bilibili and CD Projekt 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 CD Projekt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and CD Projekt.
Diversification Opportunities for Bilibili and CD Projekt
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bilibili and OTGLY is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and CD Projekt SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CD Projekt SA 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 CD Projekt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CD Projekt SA has no effect on the direction of Bilibili i.e., Bilibili and CD Projekt go up and down completely randomly.
Pair Corralation between Bilibili and CD Projekt
Assuming the 90 days horizon Bilibili is expected to generate 5.89 times more return on investment than CD Projekt. However, Bilibili is 5.89 times more volatile than CD Projekt SA. It trades about 0.08 of its potential returns per unit of risk. CD Projekt SA is currently generating about -0.06 per unit of risk. If you would invest 1,500 in Bilibili on September 2, 2024 and sell it today you would earn a total of 584.00 from holding Bilibili or generate 38.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Bilibili vs. CD Projekt SA
Performance |
| Timeline |
| Bilibili |
| CD Projekt SA |
Bilibili and CD Projekt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bilibili and CD Projekt
The main advantage of trading using opposite Bilibili and CD Projekt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, CD Projekt 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 CD Projekt will offset losses from the drop in CD Projekt's long position.| Bilibili vs. CD Projekt SA | Bilibili vs. Playtika Holding Corp | Bilibili vs. Square Enix Holdings | Bilibili vs. Nexon Co Ltd |
| CD Projekt vs. Square Enix Holdings | CD Projekt vs. Capcom Co | CD Projekt vs. Sega Sammy Holdings | CD Projekt vs. Square Enix Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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