Correlation Between Blue Hat and The9
Can any of the company-specific risk be diversified away by investing in both Blue Hat and The9 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 Blue Hat and The9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Hat Interactive and The9 Ltd ADR, you can compare the effects of market volatilities on Blue Hat and The9 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 Blue Hat with a short position of The9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Hat and The9.
Diversification Opportunities for Blue Hat and The9
Modest diversification
The 3 months correlation between Blue and The9 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Blue Hat Interactive and The9 Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The9 Ltd ADR and Blue Hat 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 Blue Hat Interactive are associated (or correlated) with The9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The9 Ltd ADR has no effect on the direction of Blue Hat i.e., Blue Hat and The9 go up and down completely randomly.
Pair Corralation between Blue Hat and The9
Given the investment horizon of 90 days Blue Hat is expected to generate 1.07 times less return on investment than The9. But when comparing it to its historical volatility, Blue Hat Interactive is 1.17 times less risky than The9. It trades about 0.03 of its potential returns per unit of risk. The9 Ltd ADR is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 913.00 in The9 Ltd ADR on June 2, 2025 and sell it today you would earn a total of 2.00 from holding The9 Ltd ADR or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Hat Interactive vs. The9 Ltd ADR
Performance |
| Timeline |
| Blue Hat Interactive |
| The9 Ltd ADR |
Blue Hat and The9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Hat and The9
The main advantage of trading using opposite Blue Hat and The9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Hat position performs unexpectedly, The9 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 The9 will offset losses from the drop in The9's long position.| Blue Hat vs. Motorsport Gaming Us | Blue Hat vs. Alpha Esports Tech | Blue Hat vs. Victory Square Technologies | Blue Hat vs. GD Culture Group |
| The9 vs. Blue Hat Interactive | The9 vs. Snail, Class A | The9 vs. Sonida Senior Living | The9 vs. Nine Energy Service |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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