Correlation Between Fitell Ordinary and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Fitell Ordinary 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 Fitell Ordinary and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitell Ordinary and Boqii Holding Limited, you can compare the effects of market volatilities on Fitell Ordinary 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 Fitell Ordinary with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitell Ordinary and Boqii Holding.
Diversification Opportunities for Fitell Ordinary and Boqii Holding
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fitell and Boqii is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Fitell Ordinary 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 Fitell Ordinary 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 Fitell Ordinary 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 Fitell Ordinary i.e., Fitell Ordinary and Boqii Holding go up and down completely randomly.
Pair Corralation between Fitell Ordinary and Boqii Holding
Given the investment horizon of 90 days Fitell Ordinary is expected to generate 0.89 times more return on investment than Boqii Holding. However, Fitell Ordinary is 1.13 times less risky than Boqii Holding. It trades about 0.1 of its potential returns per unit of risk. Boqii Holding Limited is currently generating about 0.02 per unit of risk. If you would invest 505.00 in Fitell Ordinary on September 12, 2024 and sell it today you would earn a total of 2,770 from holding Fitell Ordinary or generate 548.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.69% |
| Values | Daily Returns |
Fitell Ordinary vs. Boqii Holding Limited
Performance |
| Timeline |
| Fitell Ordinary |
| Boqii Holding Limited |
Fitell Ordinary and Boqii Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitell Ordinary and Boqii Holding
The main advantage of trading using opposite Fitell Ordinary and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitell Ordinary 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.| Fitell Ordinary vs. Boqii Holding Limited | Fitell Ordinary vs. RH | Fitell Ordinary vs. Winmark | Fitell Ordinary vs. Evgo Inc |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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