Correlation Between Boqii Holding and Shoe Carnival
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival, you can compare the effects of market volatilities on Boqii Holding and Shoe Carnival 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 Shoe Carnival. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Shoe Carnival.
Diversification Opportunities for Boqii Holding and Shoe Carnival
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Boqii and Shoe is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Shoe Carnival in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shoe Carnival 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 Shoe Carnival. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shoe Carnival has no effect on the direction of Boqii Holding i.e., Boqii Holding and Shoe Carnival go up and down completely randomly.
Pair Corralation between Boqii Holding and Shoe Carnival
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 2.91 times more return on investment than Shoe Carnival. However, Boqii Holding is 2.91 times more volatile than Shoe Carnival. It trades about 0.03 of its potential returns per unit of risk. Shoe Carnival is currently generating about 0.02 per unit of risk. If you would invest 370.00 in Boqii Holding Limited on November 9, 2024 and sell it today you would lose (54.00) from holding Boqii Holding Limited or give up 14.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Shoe Carnival
Performance |
| Timeline |
| Boqii Holding Limited |
| Shoe Carnival |
Boqii Holding and Shoe Carnival Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Shoe Carnival
The main advantage of trading using opposite Boqii Holding and Shoe Carnival positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Shoe Carnival 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 Shoe Carnival will offset losses from the drop in Shoe Carnival'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 |
| Shoe Carnival vs. Citi Trends | Shoe Carnival vs. Zumiez Inc | Shoe Carnival vs. Buckle Inc | Shoe Carnival vs. Cato Corporation |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |