Correlation Between Boqii Holding and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Academy Sports 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 Academy Sports 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 Academy Sports Outdoors, you can compare the effects of market volatilities on Boqii Holding and Academy Sports 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 Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Academy Sports.
Diversification Opportunities for Boqii Holding and Academy Sports
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boqii and Academy is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors 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 Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Boqii Holding i.e., Boqii Holding and Academy Sports go up and down completely randomly.
Pair Corralation between Boqii Holding and Academy Sports
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 3.64 times more return on investment than Academy Sports. However, Boqii Holding is 3.64 times more volatile than Academy Sports Outdoors. It trades about 0.02 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about -0.03 per unit of risk. If you would invest 48.00 in Boqii Holding Limited on September 2, 2024 and sell it today you would lose (8.00) from holding Boqii Holding Limited or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Academy Sports Outdoors
Performance |
| Timeline |
| Boqii Holding Limited |
| Academy Sports Outdoors |
Boqii Holding and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Academy Sports
The main advantage of trading using opposite Boqii Holding and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Boqii Holding vs. Card Factory plc | Boqii Holding vs. School Specialty | Boqii Holding vs. Ceconomy AG ADR | Boqii Holding vs. Bowlin Travel Centers |
| Academy Sports vs. Williams Sonoma | Academy Sports vs. AutoZone | Academy Sports vs. Ulta Beauty | Academy Sports vs. Best Buy Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |