Correlation Between Boqii Holding and VinFast Auto
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and VinFast Auto 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 VinFast Auto 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 VinFast Auto Ltd, you can compare the effects of market volatilities on Boqii Holding and VinFast Auto 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 VinFast Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and VinFast Auto.
Diversification Opportunities for Boqii Holding and VinFast Auto
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Boqii and VinFast is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and VinFast Auto Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VinFast Auto 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 VinFast Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VinFast Auto has no effect on the direction of Boqii Holding i.e., Boqii Holding and VinFast Auto go up and down completely randomly.
Pair Corralation between Boqii Holding and VinFast Auto
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 1.05 times more return on investment than VinFast Auto. However, Boqii Holding is 1.05 times more volatile than VinFast Auto Ltd. It trades about 0.09 of its potential returns per unit of risk. VinFast Auto Ltd is currently generating about -0.02 per unit of risk. If you would invest 41.00 in Boqii Holding Limited on August 30, 2024 and sell it today you would earn a total of 3.00 from holding Boqii Holding Limited or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boqii Holding Limited vs. VinFast Auto Ltd
Performance |
| Timeline |
| Boqii Holding Limited |
| VinFast Auto |
Boqii Holding and VinFast Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boqii Holding and VinFast Auto
The main advantage of trading using opposite Boqii Holding and VinFast Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, VinFast Auto 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 VinFast Auto will offset losses from the drop in VinFast Auto'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 |
| VinFast Auto vs. Ford Motor | VinFast Auto vs. General Motors | VinFast Auto vs. Goodyear Tire Rubber | VinFast Auto vs. Li Auto |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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