Correlation Between NEXON Co and Bilibili
Can any of the company-specific risk be diversified away by investing in both NEXON 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 NEXON Co and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEXON Co and Bilibili, you can compare the effects of market volatilities on NEXON 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 NEXON Co with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEXON Co and Bilibili.
Diversification Opportunities for NEXON Co and Bilibili
Modest diversification
The 3 months correlation between NEXON and Bilibili is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NEXON Co and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and NEXON 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 NEXON Co 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 NEXON Co i.e., NEXON Co and Bilibili go up and down completely randomly.
Pair Corralation between NEXON Co and Bilibili
Assuming the 90 days horizon NEXON Co is expected to generate 3.83 times less return on investment than Bilibili. But when comparing it to its historical volatility, NEXON Co is 3.24 times less risky than Bilibili. It trades about 0.14 of its potential returns per unit of risk. Bilibili is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,759 in Bilibili on December 1, 2024 and sell it today you would earn a total of 275.00 from holding Bilibili or generate 15.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEXON Co vs. Bilibili
Performance |
| Timeline |
| NEXON Co |
| Bilibili |
NEXON Co and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEXON Co and Bilibili
The main advantage of trading using opposite NEXON Co and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEXON 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.| NEXON Co vs. Konami Holdings | NEXON Co vs. Sega Sammy Holdings | NEXON Co vs. i3 Interactive | NEXON Co vs. IGG Inc |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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