Correlation Between Boqii Holding and Evgo
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Evgo 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 Evgo 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 Evgo Inc, you can compare the effects of market volatilities on Boqii Holding and Evgo 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 Evgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Evgo.
Diversification Opportunities for Boqii Holding and Evgo
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boqii and Evgo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo 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 Evgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evgo Inc has no effect on the direction of Boqii Holding i.e., Boqii Holding and Evgo go up and down completely randomly.
Pair Corralation between Boqii Holding and Evgo
Allowing for the 90-day total investment horizon Boqii Holding is expected to generate 6.15 times less return on investment than Evgo. In addition to that, Boqii Holding is 1.13 times more volatile than Evgo Inc. It trades about 0.02 of its total potential returns per unit of risk. Evgo Inc is currently generating about 0.16 per unit of volatility. If you would invest 194.00 in Evgo Inc on September 2, 2024 and sell it today you would earn a total of 457.00 from holding Evgo Inc or generate 235.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Evgo Inc
Performance |
| Timeline |
| Boqii Holding Limited |
| Evgo Inc |
Boqii Holding and Evgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Evgo
The main advantage of trading using opposite Boqii Holding and Evgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Evgo 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 Evgo will offset losses from the drop in Evgo'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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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