Correlation Between GameSquare Holdings and Bilibili
Can any of the company-specific risk be diversified away by investing in both GameSquare Holdings 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 GameSquare Holdings and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameSquare Holdings and Bilibili, you can compare the effects of market volatilities on GameSquare Holdings 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 GameSquare Holdings with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameSquare Holdings and Bilibili.
Diversification Opportunities for GameSquare Holdings and Bilibili
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GameSquare and Bilibili is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GameSquare Holdings and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and GameSquare Holdings 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 GameSquare Holdings 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 GameSquare Holdings i.e., GameSquare Holdings and Bilibili go up and down completely randomly.
Pair Corralation between GameSquare Holdings and Bilibili
Given the investment horizon of 90 days GameSquare Holdings is expected to generate 1.4 times less return on investment than Bilibili. In addition to that, GameSquare Holdings is 1.19 times more volatile than Bilibili. It trades about 0.08 of its total potential returns per unit of risk. Bilibili is currently generating about 0.13 per unit of volatility. 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 |
GameSquare Holdings vs. Bilibili
Performance |
| Timeline |
| GameSquare Holdings |
| Bilibili |
GameSquare Holdings and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameSquare Holdings and Bilibili
The main advantage of trading using opposite GameSquare Holdings and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameSquare Holdings 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.| GameSquare Holdings vs. Doubledown Interactive Co | GameSquare Holdings vs. Snail, Class A | GameSquare Holdings vs. Golden Matrix Group | GameSquare Holdings vs. SohuCom |
| Bilibili vs. Electronic Arts | Bilibili vs. Take Two Interactive Software | Bilibili vs. SohuCom | Bilibili vs. Skillz Platform |
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 Stocks Directory module to find actively traded stocks across global markets.
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