Correlation Between Oriental Culture and Kidpik Corp
Can any of the company-specific risk be diversified away by investing in both Oriental Culture 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 Oriental Culture and Kidpik Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and Kidpik Corp, you can compare the effects of market volatilities on Oriental Culture 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 Oriental Culture with a short position of Kidpik Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and Kidpik Corp.
Diversification Opportunities for Oriental Culture and Kidpik Corp
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Oriental and Kidpik is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and Oriental Culture 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 Oriental Culture Holding 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 Oriental Culture i.e., Oriental Culture and Kidpik Corp go up and down completely randomly.
Pair Corralation between Oriental Culture and Kidpik Corp
Considering the 90-day investment horizon Oriental Culture Holding is expected to generate 2.0 times more return on investment than Kidpik Corp. However, Oriental Culture is 2.0 times more volatile than Kidpik Corp. It trades about 0.08 of its potential returns per unit of risk. Kidpik Corp is currently generating about 0.01 per unit of risk. If you would invest 110.00 in Oriental Culture Holding on August 27, 2024 and sell it today you would earn a total of 18.00 from holding Oriental Culture Holding or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Culture Holding vs. Kidpik Corp
Performance |
| Timeline |
| Oriental Culture Holding |
| Kidpik Corp |
Oriental Culture and Kidpik Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and Kidpik Corp
The main advantage of trading using opposite Oriental Culture and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture 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.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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