Correlation Between Kohls Corp and Original Bark
Can any of the company-specific risk be diversified away by investing in both Kohls Corp and Original Bark 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 Kohls Corp and Original Bark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kohls Corp and Original Bark Co, you can compare the effects of market volatilities on Kohls Corp and Original Bark 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 Kohls Corp with a short position of Original Bark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kohls Corp and Original Bark.
Diversification Opportunities for Kohls Corp and Original Bark
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kohls and Original is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Kohls Corp and Original Bark Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Bark and Kohls Corp 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 Kohls Corp are associated (or correlated) with Original Bark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Bark has no effect on the direction of Kohls Corp i.e., Kohls Corp and Original Bark go up and down completely randomly.
Pair Corralation between Kohls Corp and Original Bark
Considering the 90-day investment horizon Kohls Corp is expected to under-perform the Original Bark. But the stock apears to be less risky and, when comparing its historical volatility, Kohls Corp is 1.3 times less risky than Original Bark. The stock trades about -0.03 of its potential returns per unit of risk. The Original Bark Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Original Bark Co on September 2, 2024 and sell it today you would earn a total of 139.00 from holding Original Bark Co or generate 180.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kohls Corp vs. Original Bark Co
Performance |
| Timeline |
| Kohls Corp |
| Original Bark |
Kohls Corp and Original Bark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kohls Corp and Original Bark
The main advantage of trading using opposite Kohls Corp and Original Bark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kohls Corp position performs unexpectedly, Original Bark 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 Original Bark will offset losses from the drop in Original Bark's long position.| Kohls Corp vs. Nordstrom | Kohls Corp vs. Dillards | Kohls Corp vs. Marks Spencer Group | Kohls Corp vs. Marks and Spencer |
| Original Bark vs. Alcon AG | Original Bark vs. The Cooper Companies, | Original Bark vs. AngioDynamics | Original Bark vs. AptarGroup |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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