Correlation Between Dollar Tree and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Dollar Tree 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 Dollar Tree and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dollar Tree and Boqii Holding Limited, you can compare the effects of market volatilities on Dollar Tree 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 Dollar Tree with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dollar Tree and Boqii Holding.
Diversification Opportunities for Dollar Tree and Boqii Holding
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dollar and Boqii is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dollar Tree 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 Dollar Tree 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 Dollar Tree 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 Dollar Tree i.e., Dollar Tree and Boqii Holding go up and down completely randomly.
Pair Corralation between Dollar Tree and Boqii Holding
Given the investment horizon of 90 days Dollar Tree is expected to under-perform the Boqii Holding. But the stock apears to be less risky and, when comparing its historical volatility, Dollar Tree is 7.55 times less risky than Boqii Holding. The stock trades about -0.03 of its potential returns per unit of risk. The Boqii Holding Limited is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 147.00 in Boqii Holding Limited on January 20, 2024 and sell it today you would lose (120.00) from holding Boqii Holding Limited or give up 81.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Dollar Tree vs. Boqii Holding Limited
Performance |
Timeline |
Dollar Tree |
Boqii Holding Limited |
Dollar Tree and Boqii Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dollar Tree and Boqii Holding
The main advantage of trading using opposite Dollar Tree and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dollar Tree 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.Dollar Tree vs. Aquagold International | Dollar Tree vs. Morningstar Unconstrained Allocation | Dollar Tree vs. Thrivent High Yield | Dollar Tree vs. Via Renewables |
Boqii Holding vs. Shoe Carnival | Boqii Holding vs. Hibbett Sports | Boqii Holding vs. Citi Trends | Boqii Holding vs. Zumiez Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Stocks Directory Find actively traded stocks across global markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data |