Correlation Between Bilibili and DIH Holdings

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

By analyzing existing cross correlation between Bilibili and DIH Holdings US,, you can compare the effects of market volatilities on Bilibili and DIH Holdings 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 DIH Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and DIH Holdings.

Diversification Opportunities for Bilibili and DIH Holdings

-0.46

Correlation Coefficient

Bilibili  DIH Holdings

Very good diversification

The 3 months correlation between Bilibili and DIH is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and DIH Holdings US, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIH Holdings US, 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 DIH Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIH Holdings US, has no effect on the direction of Bilibili i.e., Bilibili and DIH Holdings go up and down completely randomly.

Pair Corralation between Bilibili and DIH Holdings

Given the investment horizon of 90 days Bilibili is expected to generate 0.29 times more return on investment than DIH Holdings. However, Bilibili is 3.45 times less risky than DIH Holdings. It trades about 0.06 of its potential returns per unit of risk. DIH Holdings US, is currently generating about -0.1 per unit of risk. If you would invest  1,973  in Bilibili on December 19, 2024 and sell it today you would earn a total of  187.00  from holding Bilibili or generate 9.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bilibili  vs.  DIH Holdings US,

Bilibili

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bilibili are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak essential indicators, Bilibili demonstrated solid returns over the last few months and may actually be approaching a breakup point.

DIH Holdings US,

Risk-Adjusted Performance

Very Weak

Over the last 90 days DIH Holdings US, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Bilibili and DIH Holdings

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

The idea behind Bilibili and DIH Holdings US, 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.