Correlation Between Griffon and Bilibili

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

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

Diversification Opportunities for Griffon and Bilibili

0.78

Correlation Coefficient

Griffon  Bilibili

Poor diversification

The 3 months correlation between Griffon and Bilibili is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Griffon and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili and Griffon 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 Griffon 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 Griffon i.e., Griffon and Bilibili go up and down completely randomly.

Pair Corralation between Griffon and Bilibili

Considering the 90-day investment horizon Griffon is expected to generate 1.38 times less return on investment than Bilibili. But when comparing it to its historical volatility, Griffon is 1.57 times less risky than Bilibili. It trades about 0.16 of its potential returns per unit of risk. Bilibili is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,758  in Bilibili on May 7, 2025 and sell it today you would earn a total of  486.00  from holding Bilibili or generate 27.65% return on investment over 90 days.

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

Griffon  vs.  Bilibili

Griffon

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Griffon are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Griffon reported solid returns over the last few months and may actually be approaching a breakup point.

Bilibili

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bilibili are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain essential indicators, Bilibili demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Griffon and Bilibili

The main advantage of trading using opposite Griffon and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Griffon 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 Griffon 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.