Correlation Between Card Factory and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Card Factory and Boqii Holding 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 Card Factory and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Card Factory plc and Boqii Holding Limited, you can compare the effects of market volatilities on Card Factory and Boqii Holding 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 Card Factory with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Card Factory and Boqii Holding.
Diversification Opportunities for Card Factory and Boqii Holding
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Card and Boqii is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Card Factory plc and Boqii Holding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boqii Holding Limited and Card Factory 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 Card Factory plc are associated (or correlated) with Boqii Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boqii Holding Limited has no effect on the direction of Card Factory i.e., Card Factory and Boqii Holding go up and down completely randomly.
Pair Corralation between Card Factory and Boqii Holding
Assuming the 90 days horizon Card Factory plc is expected to generate 3.56 times more return on investment than Boqii Holding. However, Card Factory is 3.56 times more volatile than Boqii Holding Limited. It trades about 0.05 of its potential returns per unit of risk. Boqii Holding Limited is currently generating about 0.03 per unit of risk. If you would invest 2.01 in Card Factory plc on August 24, 2024 and sell it today you would earn a total of 115.99 from holding Card Factory plc or generate 5770.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Card Factory plc vs. Boqii Holding Limited
Performance |
| Timeline |
| Card Factory plc |
| Boqii Holding Limited |
Card Factory and Boqii Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Card Factory and Boqii Holding
The main advantage of trading using opposite Card Factory and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Card Factory position performs unexpectedly, Boqii Holding 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 Boqii Holding will offset losses from the drop in Boqii Holding's long position.| Card Factory vs. Burlington Stores | Card Factory vs. Childrens Place | Card Factory vs. Buckle Inc | Card Factory vs. Shoe Carnival |
| Boqii Holding vs. Card Factory plc | Boqii Holding vs. School Specialty | Boqii Holding vs. Ceconomy AG ADR | Boqii Holding vs. Bowlin Travel Centers |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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