Correlation Between Take Two and Bilibili
Can any of the company-specific risk be diversified away by investing in both Take Two 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 Take Two and Bilibili into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Take Two Interactive Software and Bilibili, you can compare the effects of market volatilities on Take Two 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 Take Two with a short position of Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Take Two and Bilibili.
Diversification Opportunities for Take Two and Bilibili
Excellent diversification
The 3 months correlation between Take and Bilibili is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Take Two Interactive Software and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and Take Two 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 Take Two Interactive Software 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 Take Two i.e., Take Two and Bilibili go up and down completely randomly.
Pair Corralation between Take Two and Bilibili
Given the investment horizon of 90 days Take Two is expected to generate 1.5 times less return on investment than Bilibili. But when comparing it to its historical volatility, Take Two Interactive Software is 3.69 times less risky than Bilibili. It trades about 0.15 of its potential returns per unit of risk. Bilibili is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,461 in Bilibili on November 2, 2024 and sell it today you would earn a total of 298.00 from holding Bilibili or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Take Two Interactive Software vs. Bilibili
Performance |
| Timeline |
| Take Two Interactive |
| Bilibili |
Take Two and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Take Two and Bilibili
The main advantage of trading using opposite Take Two and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Take Two 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.| Take Two vs. Nintendo Co ADR | Take Two vs. NetEase | Take Two vs. Playtika Holding Corp | Take Two vs. Electronic Arts |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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