Correlation Between Molina Healthcare and Boqii Holding
Can any of the company-specific risk be diversified away by investing in both Molina Healthcare 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 Molina Healthcare and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molina Healthcare and Boqii Holding Limited, you can compare the effects of market volatilities on Molina Healthcare 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 Molina Healthcare with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molina Healthcare and Boqii Holding.
Diversification Opportunities for Molina Healthcare and Boqii Holding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molina and Boqii is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare 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 Molina Healthcare i.e., Molina Healthcare and Boqii Holding go up and down completely randomly.
Pair Corralation between Molina Healthcare and Boqii Holding
Considering the 90-day investment horizon Molina Healthcare is expected to generate 0.11 times more return on investment than Boqii Holding. However, Molina Healthcare is 9.51 times less risky than Boqii Holding. It trades about 0.07 of its potential returns per unit of risk. Boqii Holding Limited is currently generating about 0.0 per unit of risk. If you would invest 27,928 in Molina Healthcare on January 20, 2024 and sell it today you would earn a total of 8,166 from holding Molina Healthcare or generate 29.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Molina Healthcare vs. Boqii Holding Limited
Performance |
Timeline |
Molina Healthcare |
Boqii Holding Limited |
Molina Healthcare and Boqii Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Molina Healthcare and Boqii Holding
The main advantage of trading using opposite Molina Healthcare and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molina Healthcare 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.Molina Healthcare vs. Certara | Molina Healthcare vs. HealthStream | Molina Healthcare vs. Evolent Health | Molina Healthcare vs. Streamline Health Solutions |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |