Correlation Between Boqii Holding and Lucid
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Lucid 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 Lucid 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 Lucid Group, you can compare the effects of market volatilities on Boqii Holding and Lucid 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 Lucid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Lucid.
Diversification Opportunities for Boqii Holding and Lucid
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boqii and Lucid is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Lucid Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lucid Group 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 Lucid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lucid Group has no effect on the direction of Boqii Holding i.e., Boqii Holding and Lucid go up and down completely randomly.
Pair Corralation between Boqii Holding and Lucid
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 1.18 times more return on investment than Lucid. However, Boqii Holding is 1.18 times more volatile than Lucid Group. It trades about 0.2 of its potential returns per unit of risk. Lucid Group is currently generating about -0.2 per unit of risk. If you would invest 42.00 in Boqii Holding Limited on August 27, 2024 and sell it today you would earn a total of 8.00 from holding Boqii Holding Limited or generate 19.05% 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. Lucid Group
Performance |
| Timeline |
| Boqii Holding Limited |
| Lucid Group |
Boqii Holding and Lucid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Lucid
The main advantage of trading using opposite Boqii Holding and Lucid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Lucid 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 Lucid will offset losses from the drop in Lucid's long position.| Boqii Holding vs. Sea | Boqii Holding vs. Wayfair | Boqii Holding vs. Chewy Inc | Boqii Holding vs. Vipshop Holdings Limited |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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