Correlation Between Boqii Holding and T.J. Maxx
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and T.J. Maxx 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 T.J. Maxx 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 The TJX Companies, you can compare the effects of market volatilities on Boqii Holding and T.J. Maxx 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 T.J. Maxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and T.J. Maxx.
Diversification Opportunities for Boqii Holding and T.J. Maxx
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boqii and T.J. is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and The TJX Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJX Companies 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 T.J. Maxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJX Companies has no effect on the direction of Boqii Holding i.e., Boqii Holding and T.J. Maxx go up and down completely randomly.
Pair Corralation between Boqii Holding and T.J. Maxx
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 216.87 times more return on investment than T.J. Maxx. However, Boqii Holding is 216.87 times more volatile than The TJX Companies. It trades about 0.23 of its potential returns per unit of risk. The TJX Companies is currently generating about 0.18 per unit of risk. If you would invest 36.00 in Boqii Holding Limited on November 1, 2024 and sell it today you would earn a total of 311.00 from holding Boqii Holding Limited or generate 863.89% 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. The TJX Companies
Performance |
| Timeline |
| Boqii Holding Limited |
| TJX Companies |
Boqii Holding and T.J. Maxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and T.J. Maxx
The main advantage of trading using opposite Boqii Holding and T.J. Maxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, T.J. Maxx 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 T.J. Maxx will offset losses from the drop in T.J. Maxx'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 |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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