Correlation Between Boqii Holding and Coupang LLC
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Coupang LLC 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 Coupang LLC 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 Coupang LLC, you can compare the effects of market volatilities on Boqii Holding and Coupang LLC 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 Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Coupang LLC.
Diversification Opportunities for Boqii Holding and Coupang LLC
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boqii and Coupang is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC 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 Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of Boqii Holding i.e., Boqii Holding and Coupang LLC go up and down completely randomly.
Pair Corralation between Boqii Holding and Coupang LLC
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 5.13 times more return on investment than Coupang LLC. However, Boqii Holding is 5.13 times more volatile than Coupang LLC. It trades about 0.03 of its potential returns per unit of risk. Coupang LLC is currently generating about 0.03 per unit of risk. If you would invest 139.00 in Boqii Holding Limited on August 23, 2024 and sell it today you would lose (88.00) from holding Boqii Holding Limited or give up 63.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Coupang LLC
Performance |
| Timeline |
| Boqii Holding Limited |
| Coupang LLC |
Boqii Holding and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Coupang LLC
The main advantage of trading using opposite Boqii Holding and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.| Boqii Holding vs. Winmark | Boqii Holding vs. Arko Corp | Boqii Holding vs. ABIVAX Socit Anonyme | Boqii Holding vs. SCOR PK |
| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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