Correlation Between Boqii Holding and 1 800
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and 1 800 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 1 800 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 1 800 FLOWERSCOM, you can compare the effects of market volatilities on Boqii Holding and 1 800 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 1 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and 1 800.
Diversification Opportunities for Boqii Holding and 1 800
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Boqii and FLWS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and 1 800 FLOWERSCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1 800 FLOWERSCOM 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 1 800. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1 800 FLOWERSCOM has no effect on the direction of Boqii Holding i.e., Boqii Holding and 1 800 go up and down completely randomly.
Pair Corralation between Boqii Holding and 1 800
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 3.08 times more return on investment than 1 800. However, Boqii Holding is 3.08 times more volatile than 1 800 FLOWERSCOM. It trades about 0.02 of its potential returns per unit of risk. 1 800 FLOWERSCOM is currently generating about -0.04 per unit of risk. If you would invest 48.00 in Boqii Holding Limited on September 2, 2024 and sell it today you would lose (8.00) from holding Boqii Holding Limited or give up 16.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. 1 800 FLOWERSCOM
Performance |
| Timeline |
| Boqii Holding Limited |
| 1 800 FLOWERSCOM |
Boqii Holding and 1 800 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and 1 800
The main advantage of trading using opposite Boqii Holding and 1 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, 1 800 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 1 800 will offset losses from the drop in 1 800'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 Transaction History module to view history of all your transactions and understand their impact on performance.
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