Correlation Between Bilibili and Blue Hat
Can any of the company-specific risk be diversified away by investing in both Bilibili and Blue Hat 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 Blue Hat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bilibili and Blue Hat Interactive, you can compare the effects of market volatilities on Bilibili and Blue Hat 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 Blue Hat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bilibili and Blue Hat.
Diversification Opportunities for Bilibili and Blue Hat
Very weak diversification
The 3 months correlation between Bilibili and Blue is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bilibili and Blue Hat Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Hat Interactive 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 Blue Hat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Hat Interactive has no effect on the direction of Bilibili i.e., Bilibili and Blue Hat go up and down completely randomly.
Pair Corralation between Bilibili and Blue Hat
Given the investment horizon of 90 days Bilibili is expected to generate 1.29 times more return on investment than Blue Hat. However, Bilibili is 1.29 times more volatile than Blue Hat Interactive. It trades about 0.07 of its potential returns per unit of risk. Blue Hat Interactive is currently generating about 0.04 per unit of risk. If you would invest 970.00 in Bilibili on January 18, 2024 and sell it today you would earn a total of 133.00 from holding Bilibili or generate 13.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bilibili vs. Blue Hat Interactive
Performance |
Timeline |
Bilibili |
Blue Hat Interactive |
Bilibili and Blue Hat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bilibili and Blue Hat
The main advantage of trading using opposite Bilibili and Blue Hat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bilibili position performs unexpectedly, Blue Hat 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 Blue Hat will offset losses from the drop in Blue Hat's long position.Bilibili vs. Electronic Arts | Bilibili vs. Take Two Interactive Software | Bilibili vs. SohuCom | Bilibili vs. Skillz Platform |
Blue Hat vs. Mobile Global Esports | Blue Hat vs. GD Culture Group | Blue Hat vs. Playstudios | Blue Hat vs. Tiidal Gaming Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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