Correlation Between GEELY AUTOMOBILE and Bilibili
Can any of the company-specific risk be diversified away by investing in both GEELY AUTOMOBILE 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 GEELY AUTOMOBILE and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GEELY AUTOMOBILE and Bilibili, you can compare the effects of market volatilities on GEELY AUTOMOBILE 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 GEELY AUTOMOBILE with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEELY AUTOMOBILE and Bilibili.
Diversification Opportunities for GEELY AUTOMOBILE and Bilibili
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GEELY and Bilibili is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding GEELY AUTOMOBILE and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and GEELY AUTOMOBILE 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 GEELY AUTOMOBILE 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 GEELY AUTOMOBILE i.e., GEELY AUTOMOBILE and Bilibili go up and down completely randomly.
Pair Corralation between GEELY AUTOMOBILE and Bilibili
Assuming the 90 days trading horizon GEELY AUTOMOBILE is expected to generate 0.71 times more return on investment than Bilibili. However, GEELY AUTOMOBILE is 1.42 times less risky than Bilibili. It trades about 0.0 of its potential returns per unit of risk. Bilibili is currently generating about -0.08 per unit of risk. If you would invest 178.00 in GEELY AUTOMOBILE on October 25, 2024 and sell it today you would lose (2.00) from holding GEELY AUTOMOBILE or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GEELY AUTOMOBILE vs. Bilibili
Performance |
| Timeline |
| GEELY AUTOMOBILE |
| Bilibili |
GEELY AUTOMOBILE and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEELY AUTOMOBILE and Bilibili
The main advantage of trading using opposite GEELY AUTOMOBILE and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEELY AUTOMOBILE 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.| GEELY AUTOMOBILE vs. NIGHTINGALE HEALTH EO | GEELY AUTOMOBILE vs. Cardinal Health | GEELY AUTOMOBILE vs. Iridium Communications | GEELY AUTOMOBILE vs. National Health Investors |
| Bilibili vs. GEELY AUTOMOBILE | Bilibili vs. INTER CARS SA | Bilibili vs. SMA Solar Technology | Bilibili vs. Computershare Limited |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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