Correlation Between Playtika Holding and Bilibili
Can any of the company-specific risk be diversified away by investing in both Playtika Holding 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 Playtika Holding and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtika Holding Corp and Bilibili, you can compare the effects of market volatilities on Playtika Holding 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 Playtika Holding with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtika Holding and Bilibili.
Diversification Opportunities for Playtika Holding and Bilibili
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Playtika and Bilibili is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Playtika Holding Corp and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and Playtika Holding 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 Playtika Holding Corp 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 Playtika Holding i.e., Playtika Holding and Bilibili go up and down completely randomly.
Pair Corralation between Playtika Holding and Bilibili
Given the investment horizon of 90 days Playtika Holding is expected to generate 1.4 times less return on investment than Bilibili. But when comparing it to its historical volatility, Playtika Holding Corp is 1.74 times less risky than Bilibili. It trades about 0.02 of its potential returns per unit of risk. Bilibili is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,172 in Bilibili on August 28, 2024 and sell it today you would lose (333.00) from holding Bilibili or give up 15.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtika Holding Corp vs. Bilibili
Performance |
| Timeline |
| Playtika Holding Corp |
| Bilibili |
Playtika Holding and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtika Holding and Bilibili
The main advantage of trading using opposite Playtika Holding and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtika Holding 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.| Playtika Holding vs. AEye Inc | Playtika Holding vs. Arqit Quantum Warrants | Playtika Holding vs. Xos Equity Warrants |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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