Correlation Between Aurubis Ag and Boqii Holding

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Can any of the company-specific risk be diversified away by investing in both Aurubis Ag 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 Aurubis Ag and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurubis Ag and Boqii Holding, you can compare the effects of market volatilities on Aurubis Ag 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 Aurubis Ag with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurubis Ag and Boqii Holding.

Diversification Opportunities for Aurubis Ag and Boqii Holding

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Aurubis and Boqii is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aurubis Ag and Boqii Holding Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boqii Holding and Aurubis Ag 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 Aurubis Ag 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 has no effect on the direction of Aurubis Ag i.e., Aurubis Ag and Boqii Holding go up and down completely randomly.

Pair Corralation between Aurubis Ag and Boqii Holding

Assuming the 90 days horizon Aurubis Ag is expected to generate 2.2 times less return on investment than Boqii Holding. But when comparing it to its historical volatility, Aurubis Ag is 1.59 times less risky than Boqii Holding. It trades about 0.16 of its potential returns per unit of risk. Boqii Holding is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  120.00  in Boqii Holding on September 1, 2022 and sell it today you would earn a total of  32.00  from holding Boqii Holding or generate 26.67% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Aurubis Ag  vs.  Boqii Holding Ltd

 Performance (%) 
       Timeline  
Aurubis Ag 
Aurubis Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Aurubis Ag are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Aurubis Ag showed solid returns over the last few months and may actually be approaching a breakup point.

Aurubis Price Channel

Boqii Holding 
Boqii Performance
0 of 100
Over the last 90 days Boqii Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Boqii Holding is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the insiders.

Boqii Price Channel

Aurubis Ag and Boqii Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aurubis Ag and Boqii Holding

The main advantage of trading using opposite Aurubis Ag and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurubis Ag 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.
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The idea behind Aurubis Ag and Boqii Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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