Correlation Between Boqii Holding and Designer Brands
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Designer Brands 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 Designer Brands 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 Designer Brands, you can compare the effects of market volatilities on Boqii Holding and Designer Brands 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 Designer Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Designer Brands.
Diversification Opportunities for Boqii Holding and Designer Brands
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boqii and Designer is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Designer Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Designer Brands 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 Designer Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Designer Brands has no effect on the direction of Boqii Holding i.e., Boqii Holding and Designer Brands go up and down completely randomly.
Pair Corralation between Boqii Holding and Designer Brands
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 1.71 times more return on investment than Designer Brands. However, Boqii Holding is 1.71 times more volatile than Designer Brands. It trades about 0.17 of its potential returns per unit of risk. Designer Brands is currently generating about -0.16 per unit of risk. If you would invest 43.00 in Boqii Holding Limited on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Boqii Holding Limited or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Designer Brands
Performance |
| Timeline |
| Boqii Holding Limited |
| Designer Brands |
Boqii Holding and Designer Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Designer Brands
The main advantage of trading using opposite Boqii Holding and Designer Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Designer Brands 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 Designer Brands will offset losses from the drop in Designer Brands' 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 |
| Designer Brands vs. Wolverine World Wide | Designer Brands vs. Weyco Group | Designer Brands vs. Steven Madden | Designer Brands vs. Rocky Brands |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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