Correlation Between Newegg Commerce and Kidpik Corp
Can any of the company-specific risk be diversified away by investing in both Newegg Commerce 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 Newegg Commerce and Kidpik Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Newegg Commerce and Kidpik Corp, you can compare the effects of market volatilities on Newegg Commerce 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 Newegg Commerce with a short position of Kidpik Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Newegg Commerce and Kidpik Corp.
Diversification Opportunities for Newegg Commerce and Kidpik Corp
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Newegg and Kidpik is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Newegg Commerce and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and Newegg Commerce 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 Newegg Commerce 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 Newegg Commerce i.e., Newegg Commerce and Kidpik Corp go up and down completely randomly.
Pair Corralation between Newegg Commerce and Kidpik Corp
Given the investment horizon of 90 days Newegg Commerce is expected to generate 0.28 times more return on investment than Kidpik Corp. However, Newegg Commerce is 3.62 times less risky than Kidpik Corp. It trades about 0.02 of its potential returns per unit of risk. Kidpik Corp is currently generating about -0.4 per unit of risk. If you would invest 45.00 in Newegg Commerce on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Newegg Commerce or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Newegg Commerce vs. Kidpik Corp
Performance |
| Timeline |
| Newegg Commerce |
| Kidpik Corp |
Newegg Commerce and Kidpik Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Newegg Commerce and Kidpik Corp
The main advantage of trading using opposite Newegg Commerce and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Newegg Commerce 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.| Newegg Commerce vs. Jeffs Brands | Newegg Commerce vs. Jumia Technologies AG | Newegg Commerce vs. Kidpik Corp | Newegg Commerce vs. Qurate Retail Series |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |