Correlation Between Boqii Holding and Continental
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Continental 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 Continental 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 Caleres, you can compare the effects of market volatilities on Boqii Holding and Continental 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 Continental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Continental.
Diversification Opportunities for Boqii Holding and Continental
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boqii and Continental is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Caleres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental 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 Continental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental has no effect on the direction of Boqii Holding i.e., Boqii Holding and Continental go up and down completely randomly.
Pair Corralation between Boqii Holding and Continental
Allowing for the 90-day total investment horizon Boqii Holding is expected to generate 1.01 times less return on investment than Continental. In addition to that, Boqii Holding is 1.7 times more volatile than Caleres. It trades about 0.08 of its total potential returns per unit of risk. Caleres is currently generating about 0.13 per unit of volatility. If you would invest 2,945 in Caleres on August 24, 2024 and sell it today you would earn a total of 218.00 from holding Caleres or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Boqii Holding Limited vs. Caleres
Performance |
| Timeline |
| Boqii Holding Limited |
| Continental |
Boqii Holding and Continental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Continental
The main advantage of trading using opposite Boqii Holding and Continental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Continental 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 Continental will offset losses from the drop in Continental'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 |
| Continental vs. Vera Bradley | Continental vs. Wolverine World Wide | Continental vs. Rocky Brands | Continental vs. Steven Madden |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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