Correlation Between Boqii Holding and SunCar Technology
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and SunCar Technology 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 SunCar Technology 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 SunCar Technology Group, you can compare the effects of market volatilities on Boqii Holding and SunCar Technology 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 SunCar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and SunCar Technology.
Diversification Opportunities for Boqii Holding and SunCar Technology
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boqii and SunCar is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and SunCar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunCar Technology 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 SunCar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunCar Technology has no effect on the direction of Boqii Holding i.e., Boqii Holding and SunCar Technology go up and down completely randomly.
Pair Corralation between Boqii Holding and SunCar Technology
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the SunCar Technology. But the stock apears to be less risky and, when comparing its historical volatility, Boqii Holding Limited is 1.1 times less risky than SunCar Technology. The stock trades about -0.1 of its potential returns per unit of risk. The SunCar Technology Group is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 31.00 in SunCar Technology Group on November 2, 2024 and sell it today you would earn a total of 2.00 from holding SunCar Technology Group or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 78.95% |
| Values | Daily Returns |
Boqii Holding Limited vs. SunCar Technology Group
Performance |
| Timeline |
| Boqii Holding Limited |
| SunCar Technology |
Boqii Holding and SunCar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and SunCar Technology
The main advantage of trading using opposite Boqii Holding and SunCar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, SunCar Technology 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 SunCar Technology will offset losses from the drop in SunCar Technology'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 |
| SunCar Technology vs. Pure Cycle | SunCar Technology vs. Newell Brands | SunCar Technology vs. Timken Company | SunCar Technology vs. Procter Gamble |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |