Correlation Between Park Ha and Boqii Holding

Can any of the company-specific risk be diversified away by investing in both Park Ha 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 Park Ha and Boqii Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Park Ha Biological and Boqii Holding Limited, you can compare the effects of market volatilities on Park Ha 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 Park Ha with a short position of Boqii Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Ha and Boqii Holding.

Diversification Opportunities for Park Ha and Boqii Holding

-0.59

Correlation Coefficient

Park Ha  Boqii Holding

Excellent diversification

The 3 months correlation between Park and Boqii is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Park Ha Biological 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 Park Ha 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 Park Ha Biological 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 Park Ha i.e., Park Ha and Boqii Holding go up and down completely randomly.

Pair Corralation between Park Ha and Boqii Holding

Considering the 90-day investment horizon Park Ha Biological is expected to under-perform the Boqii Holding. In addition to that, Park Ha is 1.24 times more volatile than Boqii Holding Limited. It trades about -0.07 of its total potential returns per unit of risk. Boqii Holding Limited is currently generating about 0.08 per unit of volatility. If you would invest  217.00  in Boqii Holding Limited on May 3, 2025 and sell it today you would earn a total of  54.00  from holding Boqii Holding Limited or generate 24.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Park Ha Biological  vs.  Boqii Holding Limited

Park Ha Biological

Risk-Adjusted Performance

Very Weak

Over the last 90 days Park Ha Biological 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 technical indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Boqii Holding Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Boqii Holding Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Boqii Holding reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Park Ha and Boqii Holding

The main advantage of trading using opposite Park Ha and Boqii Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Ha 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.

The idea behind Park Ha Biological and Boqii Holding 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.