Correlation Between Boqii Holding and LandBridge Company

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

Diversification Opportunities for Boqii Holding and LandBridge Company

-0.02

Correlation Coefficient

Boqii Holding  LandBridge Company

Good diversification

The 3 months correlation between Boqii and LandBridge is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and LandBridge Company LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LandBridge Company 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 LandBridge Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LandBridge Company has no effect on the direction of Boqii Holding i.e., Boqii Holding and LandBridge Company go up and down completely randomly.

Pair Corralation between Boqii Holding and LandBridge Company

Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to under-perform the LandBridge Company. In addition to that, Boqii Holding is 1.05 times more volatile than LandBridge Company LLC. It trades about -0.46 of its total potential returns per unit of risk. LandBridge Company LLC is currently generating about -0.21 per unit of volatility. If you would invest  7,341  in LandBridge Company LLC on September 26, 2024 and sell it today you would lose (1,245) from holding LandBridge Company LLC or give up 16.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Boqii Holding Limited  vs.  LandBridge Company LLC

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 latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

LandBridge Company

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in LandBridge Company LLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental drivers, LandBridge Company sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boqii Holding and LandBridge Company

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

The idea behind Boqii Holding Limited and LandBridge Company LLC 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.