Correlation Between Boqii Holding and Lixiang Education
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Lixiang Education 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 Lixiang Education 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 Lixiang Education Holding, you can compare the effects of market volatilities on Boqii Holding and Lixiang Education 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 Lixiang Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Lixiang Education.
Diversification Opportunities for Boqii Holding and Lixiang Education
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boqii and Lixiang is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Lixiang Education Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lixiang Education Holding 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 Lixiang Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lixiang Education Holding has no effect on the direction of Boqii Holding i.e., Boqii Holding and Lixiang Education go up and down completely randomly.
Pair Corralation between Boqii Holding and Lixiang Education
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 0.92 times more return on investment than Lixiang Education. However, Boqii Holding Limited is 1.08 times less risky than Lixiang Education. It trades about 0.1 of its potential returns per unit of risk. Lixiang Education Holding is currently generating about 0.04 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Lixiang Education Holding
Performance |
| Timeline |
| Boqii Holding Limited |
| Lixiang Education Holding |
Boqii Holding and Lixiang Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Lixiang Education
The main advantage of trading using opposite Boqii Holding and Lixiang Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Lixiang Education 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 Lixiang Education will offset losses from the drop in Lixiang Education'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 |
| Lixiang Education vs. China Liberal Education | Lixiang Education vs. Four Seasons Education | Lixiang Education vs. Jianzhi Education Technology | Lixiang Education vs. Elite Education Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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