Correlation Between Boqii Holding and Arhaus
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Arhaus 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 Boqii Holding and Arhaus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boqii Holding Limited and Arhaus Inc, you can compare the effects of market volatilities on Boqii Holding and Arhaus 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 Boqii Holding with a short position of Arhaus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Arhaus.
Diversification Opportunities for Boqii Holding and Arhaus
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boqii and Arhaus is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Arhaus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arhaus Inc and Boqii Holding 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 Boqii Holding Limited are associated (or correlated) with Arhaus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arhaus Inc has no effect on the direction of Boqii Holding i.e., Boqii Holding and Arhaus go up and down completely randomly.
Pair Corralation between Boqii Holding and Arhaus
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 2.56 times more return on investment than Arhaus. However, Boqii Holding is 2.56 times more volatile than Arhaus Inc. It trades about 0.06 of its potential returns per unit of risk. Arhaus Inc is currently generating about -0.12 per unit of risk. If you would invest 40.00 in Boqii Holding Limited on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Boqii Holding Limited or generate 27.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Arhaus Inc
Performance |
| Timeline |
| Boqii Holding Limited |
| Arhaus Inc |
Boqii Holding and Arhaus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Arhaus
The main advantage of trading using opposite Boqii Holding and Arhaus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Arhaus 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 Arhaus will offset losses from the drop in Arhaus' long position.| Boqii Holding vs. Winmark | Boqii Holding vs. Arko Corp | Boqii Holding vs. ABIVAX Socit Anonyme | Boqii Holding vs. SCOR PK |
| Arhaus vs. Small Cap Core | Arhaus vs. Freedom Holding Corp | Arhaus vs. Gfl Environmental Holdings | Arhaus vs. Growth Fund Of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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