Correlation Between Boqii Holding and Asbury Automotive
Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Asbury Automotive 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 Asbury Automotive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boqii Holding Limited and Asbury Automotive Group, you can compare the effects of market volatilities on Boqii Holding and Asbury Automotive 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 Asbury Automotive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Asbury Automotive.
Diversification Opportunities for Boqii Holding and Asbury Automotive
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Boqii and Asbury is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Asbury Automotive Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asbury Automotive 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 Limited are associated (or correlated) with Asbury Automotive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asbury Automotive has no effect on the direction of Boqii Holding i.e., Boqii Holding and Asbury Automotive go up and down completely randomly.
Pair Corralation between Boqii Holding and Asbury Automotive
Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the Asbury Automotive. In addition to that, Boqii Holding is 3.81 times more volatile than Asbury Automotive Group. It trades about -0.04 of its total potential returns per unit of risk. Asbury Automotive Group is currently generating about 0.05 per unit of volatility. If you would invest 18,607 in Asbury Automotive Group on September 24, 2024 and sell it today you would earn a total of 5,970 from holding Asbury Automotive Group or generate 32.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Boqii Holding Limited vs. Asbury Automotive Group
Performance |
Timeline |
Boqii Holding Limited |
Asbury Automotive |
Boqii Holding and Asbury Automotive Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Boqii Holding and Asbury Automotive
The main advantage of trading using opposite Boqii Holding and Asbury Automotive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boqii Holding position performs unexpectedly, Asbury Automotive 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 Asbury Automotive will offset losses from the drop in Asbury Automotive's long position.Boqii Holding vs. PDD Holdings | Boqii Holding vs. Alibaba Group Holding | Boqii Holding vs. Sea | Boqii Holding vs. Wayfair |
Asbury Automotive vs. Macys Inc | Asbury Automotive vs. Wayfair | Asbury Automotive vs. 1StdibsCom | Asbury Automotive vs. Boqii Holding Limited |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Stocks Directory Find actively traded stocks across global markets |