Correlation Between Macys and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Macys 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 Macys and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macys Inc and Boqii Holding Limited, you can compare the effects of market volatilities on Macys 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 Macys with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macys and Boqii Holding.
Diversification Opportunities for Macys and Boqii Holding
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Macys and Boqii is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Macys Inc 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 Macys 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 Macys Inc 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 Macys i.e., Macys and Boqii Holding go up and down completely randomly.
Pair Corralation between Macys and Boqii Holding
Taking into account the 90-day investment horizon Macys Inc is expected to under-perform the Boqii Holding. But the stock apears to be less risky and, when comparing its historical volatility, Macys Inc is 2.78 times less risky than Boqii Holding. The stock trades about -0.17 of its potential returns per unit of risk. The Boqii Holding Limited is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 24.00 in Boqii Holding Limited on January 28, 2024 and sell it today you would earn a total of 6.00 from holding Boqii Holding Limited or generate 25.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Macys Inc vs. Boqii Holding Limited
Performance |
Timeline |
Macys Inc |
Boqii Holding Limited |
Macys and Boqii Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Macys and Boqii Holding
The main advantage of trading using opposite Macys and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macys 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.Macys vs. Marks Spencer Group | Macys vs. Marks and Spencer | Macys vs. Dillards Capital Trust | Macys vs. Companhia Brasileira de |
Boqii Holding vs. Tuniu Corp | Boqii Holding vs. Mondee Holdings | Boqii Holding vs. Amadeus IT Group | Boqii Holding vs. Travel Leisure Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
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 | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |