Correlation Between Big 5 and Boqii Holding

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Big 5 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 Big 5 and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Big 5 Sporting and Boqii Holding, you can compare the effects of market volatilities on Big 5 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 Big 5 with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Big 5 and Boqii Holding.

Diversification Opportunities for Big 5 and Boqii Holding

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Big 5 and Boqii is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Big 5 Sporting and Boqii Holding Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boqii Holding and Big 5 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 Big 5 Sporting 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 Big 5 i.e., Big 5 and Boqii Holding go up and down completely randomly.

Pair Corralation between Big 5 and Boqii Holding

Given the investment horizon of 90 days Big 5 is expected to generate 2.55 times less return on investment than Boqii Holding. But when comparing it to its historical volatility, Big 5 Sporting is 2.84 times less risky than Boqii Holding. It trades about 0.12 of its potential returns per unit of risk. Boqii Holding is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  187.00  in Boqii Holding on May 13, 2022 and sell it today you would earn a total of  34.00  from holding Boqii Holding or generate 18.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Big 5 Sporting  vs.  Boqii Holding Ltd

 Performance (%) 
       Timeline  
Big 5 Sporting 
Big 5 Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Big 5 Sporting are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable technical and fundamental indicators, Big 5 is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Big 5 Price Channel

Boqii Holding 
Boqii Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Boqii Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Boqii Holding displayed solid returns over the last few months and may actually be approaching a breakup point.

Boqii Price Channel

Big 5 and Boqii Holding Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Big 5 and Boqii Holding

The main advantage of trading using opposite Big 5 and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Big 5 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.
The idea behind Big 5 Sporting 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.
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go