Correlation Between Kidpik Corp and Lanvin Group
Can any of the company-specific risk be diversified away by investing in both Kidpik Corp and Lanvin Group 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 Kidpik Corp and Lanvin Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kidpik Corp and Lanvin Group Holdings, you can compare the effects of market volatilities on Kidpik Corp and Lanvin Group 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 Kidpik Corp with a short position of Lanvin Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidpik Corp and Lanvin Group.
Diversification Opportunities for Kidpik Corp and Lanvin Group
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kidpik and Lanvin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kidpik Corp and Lanvin Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lanvin Group Holdings and Kidpik 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 Kidpik Corp are associated (or correlated) with Lanvin Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lanvin Group Holdings has no effect on the direction of Kidpik Corp i.e., Kidpik Corp and Lanvin Group go up and down completely randomly.
Pair Corralation between Kidpik Corp and Lanvin Group
Considering the 90-day investment horizon Kidpik Corp is expected to under-perform the Lanvin Group. But the stock apears to be less risky and, when comparing its historical volatility, Kidpik Corp is 1.12 times less risky than Lanvin Group. The stock trades about -0.07 of its potential returns per unit of risk. The Lanvin Group Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Lanvin Group Holdings on September 2, 2024 and sell it today you would lose (21.00) from holding Lanvin Group Holdings or give up 11.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kidpik Corp vs. Lanvin Group Holdings
Performance |
| Timeline |
| Kidpik Corp |
| Lanvin Group Holdings |
Kidpik Corp and Lanvin Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidpik Corp and Lanvin Group
The main advantage of trading using opposite Kidpik Corp and Lanvin Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidpik Corp position performs unexpectedly, Lanvin Group 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 Lanvin Group will offset losses from the drop in Lanvin Group's long position.| Kidpik Corp vs. Qurate Retail Series | Kidpik Corp vs. Natural Health Trend | Kidpik Corp vs. Liquidity Services | Kidpik Corp vs. Qurate Retail |
| Lanvin Group vs. Fossil Group | Lanvin Group vs. Signet Jewelers | Lanvin Group vs. Tapestry | Lanvin Group vs. Capri Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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