Correlation Between Boqii Holding and Verizon Communications

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

Diversification Opportunities for Boqii Holding and Verizon Communications

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Boqii and Verizon is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Ltd and Verizon Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verizon Communications 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 Verizon Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verizon Communications has no effect on the direction of Boqii Holding i.e., Boqii Holding and Verizon Communications go up and down completely randomly.

Pair Corralation between Boqii Holding and Verizon Communications

Allowing for the 90-day total investment horizon Boqii Holding is expected to under-perform the Verizon Communications. In addition to that, Boqii Holding is 6.76 times more volatile than Verizon Communications. It trades about -0.05 of its total potential returns per unit of risk. Verizon Communications is currently generating about -0.03 per unit of volatility. If you would invest  5,364  in Verizon Communications on May 9, 2022 and sell it today you would lose (869.00)  from holding Verizon Communications or give up 16.2% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy93.79%
ValuesDaily Returns

Boqii Holding Ltd  vs.  Verizon Communications

 Performance (%) 
       Timeline  
Boqii Holding 
Boqii Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Boqii Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Boqii Holding displayed solid returns over the last few months and may actually be approaching a breakup point.

Boqii Price Channel

Verizon Communications 
Verizon Performance
0 of 100
Over the last 90 days Verizon Communications has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Verizon Communications is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Verizon Price Channel

Boqii Holding and Verizon Communications Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Boqii Holding and Verizon Communications

The main advantage of trading using opposite Boqii Holding and Verizon Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Verizon Communications 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 Verizon Communications will offset losses from the drop in Verizon Communications' long position.
The idea behind Boqii Holding and Verizon Communications 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

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go