Correlation Between Boqii Holding and Revolve Group
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Revolve Group 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 Revolve Group 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 Revolve Group LLC, you can compare the effects of market volatilities on Boqii Holding and Revolve Group 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 Revolve Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Revolve Group.
Diversification Opportunities for Boqii Holding and Revolve Group
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Boqii and Revolve is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Revolve Group LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revolve Group LLC 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 Revolve Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revolve Group LLC has no effect on the direction of Boqii Holding i.e., Boqii Holding and Revolve Group go up and down completely randomly.
Pair Corralation between Boqii Holding and Revolve Group
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the Revolve Group. In addition to that, Boqii Holding is 2.06 times more volatile than Revolve Group LLC. It trades about -0.03 of its total potential returns per unit of risk. Revolve Group LLC is currently generating about 0.03 per unit of volatility. If you would invest 2,654 in Revolve Group LLC on November 2, 2024 and sell it today you would earn a total of 485.00 from holding Revolve Group LLC or generate 18.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Revolve Group LLC
Performance |
| Timeline |
| Boqii Holding Limited |
| Revolve Group LLC |
Boqii Holding and Revolve Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Revolve Group
The main advantage of trading using opposite Boqii Holding and Revolve Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Revolve Group 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 Revolve Group will offset losses from the drop in Revolve Group'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 |
| Revolve Group vs. Sea | Revolve Group vs. MercadoLibre | Revolve Group vs. Jumia Technologies AG | Revolve Group vs. PDD Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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