Correlation Between Jeffs Brands and Kidpik Corp
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Kidpik Corp 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 Jeffs Brands and Kidpik Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Kidpik Corp, you can compare the effects of market volatilities on Jeffs Brands and Kidpik Corp 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 Jeffs Brands with a short position of Kidpik Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Kidpik Corp.
Diversification Opportunities for Jeffs Brands and Kidpik Corp
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jeffs and Kidpik is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Kidpik Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidpik Corp has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Kidpik Corp go up and down completely randomly.
Pair Corralation between Jeffs Brands and Kidpik Corp
Given the investment horizon of 90 days Jeffs Brands is expected to generate 35.51 times more return on investment than Kidpik Corp. However, Jeffs Brands is 35.51 times more volatile than Kidpik Corp. It trades about 0.22 of its potential returns per unit of risk. Kidpik Corp is currently generating about 0.01 per unit of risk. If you would invest 30.00 in Jeffs Brands on August 27, 2024 and sell it today you would earn a total of 257.00 from holding Jeffs Brands or generate 856.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Kidpik Corp
Performance |
| Timeline |
| Jeffs Brands |
| Kidpik Corp |
Jeffs Brands and Kidpik Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Kidpik Corp
The main advantage of trading using opposite Jeffs Brands and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Kidpik Corp 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 Kidpik Corp will offset losses from the drop in Kidpik Corp's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Kidpik Corp vs. Qurate Retail Series | Kidpik Corp vs. Natural Health Trend | Kidpik Corp vs. Liquidity Services | Kidpik Corp vs. Qurate Retail |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |