Correlation Between Boqii Holding and AutoZone
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and AutoZone 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 AutoZone 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 AutoZone, you can compare the effects of market volatilities on Boqii Holding and AutoZone 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 AutoZone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and AutoZone.
Diversification Opportunities for Boqii Holding and AutoZone
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boqii and AutoZone is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and AutoZone in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AutoZone 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 AutoZone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AutoZone has no effect on the direction of Boqii Holding i.e., Boqii Holding and AutoZone go up and down completely randomly.
Pair Corralation between Boqii Holding and AutoZone
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the AutoZone. In addition to that, Boqii Holding is 3.41 times more volatile than AutoZone. It trades about -0.42 of its total potential returns per unit of risk. AutoZone is currently generating about 0.18 per unit of volatility. If you would invest 314,421 in AutoZone on September 27, 2024 and sell it today you would earn a total of 13,927 from holding AutoZone or generate 4.43% 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. AutoZone
Performance |
| Timeline |
| Boqii Holding Limited |
| AutoZone |
Boqii Holding and AutoZone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and AutoZone
The main advantage of trading using opposite Boqii Holding and AutoZone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, AutoZone 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 AutoZone will offset losses from the drop in AutoZone's 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 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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