Correlation Between GD Culture and Bilibili
Can any of the company-specific risk be diversified away by investing in both GD Culture 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 GD Culture and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GD Culture Group and Bilibili, you can compare the effects of market volatilities on GD Culture 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 GD Culture with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of GD Culture and Bilibili.
Diversification Opportunities for GD Culture and Bilibili
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GDC and Bilibili is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GD Culture Group and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and GD Culture 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 GD Culture Group 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 GD Culture i.e., GD Culture and Bilibili go up and down completely randomly.
Pair Corralation between GD Culture and Bilibili
Considering the 90-day investment horizon GD Culture Group is expected to generate 10.71 times more return on investment than Bilibili. However, GD Culture is 10.71 times more volatile than Bilibili. It trades about 0.04 of its potential returns per unit of risk. Bilibili is currently generating about 0.01 per unit of risk. If you would invest 381.00 in GD Culture Group on November 9, 2024 and sell it today you would lose (253.00) from holding GD Culture Group or give up 66.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GD Culture Group vs. Bilibili
Performance |
| Timeline |
| GD Culture Group |
| Bilibili |
GD Culture and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GD Culture and Bilibili
The main advantage of trading using opposite GD Culture and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GD Culture 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.| GD Culture vs. Blue Hat Interactive | GD Culture vs. Playstudios | GD Culture vs. Motorsport Gaming Us | GD Culture vs. Alpha Esports Tech |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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