Correlation Between Boqii Holding and Academy Sports

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

Diversification Opportunities for Boqii Holding and Academy Sports

-0.29
  Correlation Coefficient

Very good diversification

The 3 months correlation between Boqii and Academy is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Ltd and Academy Sports And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports And and Boqii Holding 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 Boqii Holding are associated (or correlated) with Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports And has no effect on the direction of Boqii Holding i.e., Boqii Holding and Academy Sports go up and down completely randomly.

Pair Corralation between Boqii Holding and Academy Sports

Allowing for the 90-day total investment horizon Boqii Holding is expected to under-perform the Academy Sports. In addition to that, Boqii Holding is 2.15 times more volatile than Academy Sports And. It trades about -0.07 of its total potential returns per unit of risk. Academy Sports And is currently generating about 0.09 per unit of volatility. If you would invest  1,345  in Academy Sports And on July 3, 2022 and sell it today you would earn a total of  2,873  from holding Academy Sports And or generate 213.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Boqii Holding Ltd  vs.  Academy Sports And

 Performance (%) 
       Timeline  
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 weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in November 2022. The recent disarray may also be a sign of long period up-swing for the firm insiders.

Boqii Price Channel

Academy Sports And 
Academy Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Academy Sports And are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Academy Sports disclosed solid returns over the last few months and may actually be approaching a breakup point.

Academy Price Channel

Boqii Holding and Academy Sports Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boqii Holding and Academy Sports

The main advantage of trading using opposite Boqii Holding and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.
Boqii Holding vs. Best Buy Company
The idea behind Boqii Holding and Academy Sports And 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.
Academy Sports vs. Best Buy Company
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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