Correlation Between Lowes Companies and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Lowes Companies 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 Lowes Companies and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowes Companies and Boqii Holding Limited, you can compare the effects of market volatilities on Lowes Companies 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 Lowes Companies with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowes Companies and Boqii Holding.
Diversification Opportunities for Lowes Companies and Boqii Holding
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lowes and Boqii is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lowes Companies 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 Lowes Companies 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 Lowes Companies 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 Lowes Companies i.e., Lowes Companies and Boqii Holding go up and down completely randomly.
Pair Corralation between Lowes Companies and Boqii Holding
Considering the 90-day investment horizon Lowes Companies is expected to generate 0.29 times more return on investment than Boqii Holding. However, Lowes Companies is 3.46 times less risky than Boqii Holding. It trades about -0.04 of its potential returns per unit of risk. Boqii Holding Limited is currently generating about -0.27 per unit of risk. If you would invest 27,451 in Lowes Companies on September 12, 2024 and sell it today you would lose (440.00) from holding Lowes Companies or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lowes Companies vs. Boqii Holding Limited
Performance |
| Timeline |
| Lowes Companies |
| Boqii Holding Limited |
Lowes Companies and Boqii Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowes Companies and Boqii Holding
The main advantage of trading using opposite Lowes Companies and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowes Companies 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.| Lowes Companies vs. Victory Integrity Smallmid Cap | Lowes Companies vs. Hilton Worldwide Holdings | Lowes Companies vs. NVIDIA | Lowes Companies vs. JPMorgan Chase Co |
| Boqii Holding vs. Target | Boqii Holding vs. Lowes Companies | Boqii Holding vs. Kohls Corp | Boqii Holding vs. Walmart |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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