Correlation Between Capcom Co and Bilibili
Can any of the company-specific risk be diversified away by investing in both Capcom Co and Bilibili 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 Capcom Co and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capcom Co Ltd and Bilibili, you can compare the effects of market volatilities on Capcom Co and Bilibili 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 Capcom Co with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capcom Co and Bilibili.
Diversification Opportunities for Capcom Co and Bilibili
Very good diversification
The 3 months correlation between Capcom and Bilibili is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Capcom Co Ltd and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and Capcom Co 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 Capcom Co Ltd are associated (or correlated) with Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Capcom Co i.e., Capcom Co and Bilibili go up and down completely randomly.
Pair Corralation between Capcom Co and Bilibili
Assuming the 90 days horizon Capcom Co is expected to generate 8.15 times less return on investment than Bilibili. But when comparing it to its historical volatility, Capcom Co Ltd is 5.89 times less risky than Bilibili. It trades about 0.06 of its potential returns per unit of risk. Bilibili is currently generating about 0.08 of returns per unit of risk over similar time horizon. 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 | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Capcom Co Ltd vs. Bilibili
Performance |
| Timeline |
| Capcom Co |
| Bilibili |
Capcom Co and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capcom Co and Bilibili
The main advantage of trading using opposite Capcom Co and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capcom Co position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.| Capcom Co vs. CD Projekt SA | Capcom Co vs. Playtika Holding Corp | Capcom Co vs. Square Enix Holdings | Capcom Co vs. Nexon Co Ltd |
| Bilibili vs. CD Projekt SA | Bilibili vs. Playtika Holding Corp | Bilibili vs. Square Enix Holdings | Bilibili vs. Nexon Co Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |