Correlation Between Bilibili and MOBILE FACTORY

Can any of the company-specific risk be diversified away by investing in both Bilibili and MOBILE FACTORY 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 Bilibili and MOBILE FACTORY into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bilibili and MOBILE FACTORY INC, you can compare the effects of market volatilities on Bilibili and MOBILE FACTORY 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 Bilibili with a short position of MOBILE FACTORY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and MOBILE FACTORY.

Diversification Opportunities for Bilibili and MOBILE FACTORY

-0.16

Correlation Coefficient

Bilibili  MOBILE FACTORY

Good diversification

The 3 months correlation between Bilibili and MOBILE is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and MOBILE FACTORY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOBILE FACTORY INC and Bilibili 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 Bilibili are associated (or correlated) with MOBILE FACTORY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOBILE FACTORY INC has no effect on the direction of Bilibili i.e., Bilibili and MOBILE FACTORY go up and down completely randomly.

Pair Corralation between Bilibili and MOBILE FACTORY

Assuming the 90 days trading horizon Bilibili is expected to under-perform the MOBILE FACTORY. In addition to that, Bilibili is 1.72 times more volatile than MOBILE FACTORY INC. It trades about -0.13 of its total potential returns per unit of risk. MOBILE FACTORY INC is currently generating about 0.09 per unit of volatility. If you would invest  535.00  in MOBILE FACTORY INC on October 6, 2024 and sell it today you would earn a total of  40.00  from holding MOBILE FACTORY INC or generate 7.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.5%
Values	Daily Returns

Bilibili  vs.  MOBILE FACTORY INC

Bilibili

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bilibili has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental drivers remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

MOBILE FACTORY INC

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MOBILE FACTORY INC are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, MOBILE FACTORY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Bilibili and MOBILE FACTORY

The main advantage of trading using opposite Bilibili and MOBILE FACTORY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, MOBILE FACTORY 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 MOBILE FACTORY will offset losses from the drop in MOBILE FACTORY's long position.

The idea behind Bilibili and MOBILE FACTORY INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.