Correlation Between Boqii Holding and QuantaSing Group

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

Diversification Opportunities for Boqii Holding and QuantaSing Group

0.72

Correlation Coefficient

Boqii Holding  QuantaSing Group

Poor diversification

The 3 months correlation between Boqii and QuantaSing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Boqii Holding Limited and QuantaSing Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantaSing Group 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 QuantaSing Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantaSing Group has no effect on the direction of Boqii Holding i.e., Boqii Holding and QuantaSing Group go up and down completely randomly.

Pair Corralation between Boqii Holding and QuantaSing Group

Allowing for the 90-day total investment horizon Boqii Holding Limited is expected to generate 1.08 times more return on investment than QuantaSing Group. However, Boqii Holding is 1.08 times more volatile than QuantaSing Group Limited. It trades about -0.04 of its potential returns per unit of risk. QuantaSing Group Limited is currently generating about -0.18 per unit of risk. If you would invest  43.00  in Boqii Holding Limited on October 6, 2024 and sell it today you would lose (7.00) from holding Boqii Holding Limited or give up 16.28% of portfolio value over 90 days.

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

Boqii Holding Limited  vs.  QuantaSing Group Limited

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 weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

QuantaSing Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days QuantaSing Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Boqii Holding and QuantaSing Group

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

The idea behind Boqii Holding Limited and QuantaSing Group Limited 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.