Correlation Between Bilibili and CI GAMES
Can any of the company-specific risk be diversified away by investing in both Bilibili and CI GAMES 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 CI GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and CI GAMES SA, you can compare the effects of market volatilities on Bilibili and CI GAMES 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 CI GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and CI GAMES.
Diversification Opportunities for Bilibili and CI GAMES
Significant diversification
The 3 months correlation between Bilibili and CI7 is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and CI GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI GAMES SA 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 CI GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI GAMES SA has no effect on the direction of Bilibili i.e., Bilibili and CI GAMES go up and down completely randomly.
Pair Corralation between Bilibili and CI GAMES
Assuming the 90 days trading horizon Bilibili is expected to generate 0.89 times more return on investment than CI GAMES. However, Bilibili is 1.12 times less risky than CI GAMES. It trades about 0.04 of its potential returns per unit of risk. CI GAMES SA is currently generating about -0.05 per unit of risk. If you would invest 1,375 in Bilibili on September 10, 2024 and sell it today you would earn a total of 435.00 from holding Bilibili or generate 31.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Bilibili vs. CI GAMES SA
Performance |
Timeline |
Bilibili |
CI GAMES SA |
Bilibili and CI GAMES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bilibili and CI GAMES
The main advantage of trading using opposite Bilibili and CI GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, CI GAMES 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 CI GAMES will offset losses from the drop in CI GAMES's long position.Bilibili vs. Tencent Music Entertainment | Bilibili vs. Merit Medical Systems | Bilibili vs. Clearside Biomedical | Bilibili vs. IMAGIN MEDICAL INC |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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