Correlation Between NYSE Composite and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Boqii Holding Limited, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Boqii Holding.
Diversification Opportunities for NYSE Composite and Boqii Holding
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Boqii is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Boqii Holding go up and down completely randomly.
Pair Corralation between NYSE Composite and Boqii Holding
Assuming the 90 days trading horizon NYSE Composite is expected to generate 5.04 times less return on investment than Boqii Holding. But when comparing it to its historical volatility, NYSE Composite is 6.89 times less risky than Boqii Holding. It trades about 0.24 of its potential returns per unit of risk. Boqii Holding Limited is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Boqii Holding Limited on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Boqii Holding Limited or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Boqii Holding Limited
Performance |
| Timeline |
NYSE Composite and Boqii Holding Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Boqii Holding Limited
Pair trading matchups for Boqii Holding
Pair Trading with NYSE Composite and Boqii Holding
The main advantage of trading using opposite NYSE Composite and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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