Correlation Between Victory Square and Bilibili

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

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

Diversification Opportunities for Victory Square and Bilibili

-0.74

Correlation Coefficient

Victory Square  Bilibili

Pay attention - limited upside

The 3 months correlation between Victory and Bilibili is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Victory Square Technologies and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and Victory Square 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 Victory Square Technologies 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 Victory Square i.e., Victory Square and Bilibili go up and down completely randomly.

Pair Corralation between Victory Square and Bilibili

Assuming the 90 days horizon Victory Square Technologies is expected to under-perform the Bilibili. In addition to that, Victory Square is 2.41 times more volatile than Bilibili. It trades about -0.01 of its total potential returns per unit of risk. Bilibili is currently generating about 0.04 per unit of volatility. If you would invest  1,840  in Bilibili on December 30, 2024 and sell it today you would earn a total of  82.00  from holding Bilibili or generate 4.46% return on investment over 90 days.

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

Victory Square Technologies  vs.  Bilibili

Victory Square Techn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Victory Square Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Victory Square is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Bilibili

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bilibili are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak essential indicators, Bilibili may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Victory Square and Bilibili

The main advantage of trading using opposite Victory Square and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Square 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.

The idea behind Victory Square Technologies and Bilibili 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 Stocks Directory module to find actively traded stocks across global markets.