Correlation Between Boqii Holding and Sea
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Sea 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 Sea 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 Sea, you can compare the effects of market volatilities on Boqii Holding and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Sea.
Diversification Opportunities for Boqii Holding and Sea
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Boqii and Sea is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Sea in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea has no effect on the direction of Boqii Holding i.e., Boqii Holding and Sea go up and down completely randomly.
Pair Corralation between Boqii Holding and Sea
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 3.59 times more return on investment than Sea. However, Boqii Holding is 3.59 times more volatile than Sea. It trades about 0.03 of its potential returns per unit of risk. Sea is currently generating about 0.05 per unit of risk. If you would invest 142.00 in Boqii Holding Limited on August 27, 2024 and sell it today you would lose (92.00) from holding Boqii Holding Limited or give up 64.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. Sea
Performance |
| Timeline |
| Boqii Holding Limited |
| Sea |
Boqii Holding and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and Sea
The main advantage of trading using opposite Boqii Holding and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| Boqii Holding vs. Sea | Boqii Holding vs. Wayfair | Boqii Holding vs. Chewy Inc | Boqii Holding vs. Vipshop Holdings Limited |
| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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