Correlation Between Boqii Holding and Evgo

Can any of the company-specific risk be diversified away by investing in both Boqii Holding and Evgo 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 Evgo 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 Evgo Inc, you can compare the effects of market volatilities on Boqii Holding and Evgo 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 Evgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boqii Holding and Evgo.

Diversification Opportunities for Boqii Holding and Evgo

0.37

Correlation Coefficient

Boqii Holding  Evgo

Weak diversification

The 3 months correlation between Boqii and Evgo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and Evgo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evgo Inc 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 Evgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evgo Inc has no effect on the direction of Boqii Holding i.e., Boqii Holding and Evgo go up and down completely randomly.

Pair Corralation between Boqii Holding and Evgo

Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the Evgo. But the stock apears to be less risky and, when comparing its historical volatility, Boqii Holding Limited is 1.14 times less risky than Evgo. The stock trades about -0.01 of its potential returns per unit of risk. The Evgo Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  413.00  in Evgo Inc on September 24, 2024 and sell it today you would earn a total of  23.00  from holding Evgo Inc or generate 5.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Boqii Holding Limited  vs.  Evgo Inc

Boqii Holding Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Boqii Holding Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Boqii Holding is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Evgo Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Evgo Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Evgo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boqii Holding and Evgo

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

The idea behind Boqii Holding Limited and Evgo Inc 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 the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.