Correlation Between 1StdibsCom and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both 1StdibsCom 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 1StdibsCom and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1StdibsCom and Boqii Holding Limited, you can compare the effects of market volatilities on 1StdibsCom 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 1StdibsCom with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1StdibsCom and Boqii Holding.
Diversification Opportunities for 1StdibsCom and Boqii Holding
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 1StdibsCom and Boqii is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding 1StdibsCom 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 1StdibsCom 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 1StdibsCom 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 1StdibsCom i.e., 1StdibsCom and Boqii Holding go up and down completely randomly.
Pair Corralation between 1StdibsCom and Boqii Holding
Given the investment horizon of 90 days 1StdibsCom is expected to under-perform the Boqii Holding. But the stock apears to be less risky and, when comparing its historical volatility, 1StdibsCom is 4.47 times less risky than Boqii Holding. The stock trades about -0.02 of its potential returns per unit of risk. The Boqii Holding Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Boqii Holding Limited on August 26, 2024 and sell it today you would lose (98.00) from holding Boqii Holding Limited or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1StdibsCom vs. Boqii Holding Limited
Performance |
| Timeline |
| 1StdibsCom |
| Boqii Holding Limited |
1StdibsCom and Boqii Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1StdibsCom and Boqii Holding
The main advantage of trading using opposite 1StdibsCom and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1StdibsCom 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.| 1StdibsCom vs. Hour Loop | 1StdibsCom vs. Liquidity Services | 1StdibsCom vs. Qurate Retail Series | 1StdibsCom vs. Emerge Commerce |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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