Correlation Between Boqii Holding and Etsy
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Etsy 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 Etsy 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 Etsy Inc, you can compare the effects of market volatilities on Boqii Holding and Etsy 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 Etsy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Etsy.
Diversification Opportunities for Boqii Holding and Etsy
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Boqii and Etsy is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Etsy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etsy Inc 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 Etsy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etsy Inc has no effect on the direction of Boqii Holding i.e., Boqii Holding and Etsy go up and down completely randomly.
Pair Corralation between Boqii Holding and Etsy
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 3.79 times more return on investment than Etsy. However, Boqii Holding is 3.79 times more volatile than Etsy Inc. It trades about 0.1 of its potential returns per unit of risk. Etsy Inc is currently generating about 0.01 per unit of risk. If you would invest 31.00 in Boqii Holding Limited on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Boqii Holding Limited or generate 41.94% 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. Etsy Inc
Performance |
| Timeline |
| Boqii Holding Limited |
| Etsy Inc |
Boqii Holding and Etsy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Etsy
The main advantage of trading using opposite Boqii Holding and Etsy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Etsy 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 Etsy will offset losses from the drop in Etsy'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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
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| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |