Correlation Between Kidpik Corp and Takung Art
Can any of the company-specific risk be diversified away by investing in both Kidpik Corp and Takung Art 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 Takung Art into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kidpik Corp and Takung Art Co, you can compare the effects of market volatilities on Kidpik Corp and Takung Art 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 Takung Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidpik Corp and Takung Art.
Diversification Opportunities for Kidpik Corp and Takung Art
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kidpik and Takung is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Kidpik Corp and Takung Art Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takung Art 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 Takung Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takung Art has no effect on the direction of Kidpik Corp i.e., Kidpik Corp and Takung Art go up and down completely randomly.
Pair Corralation between Kidpik Corp and Takung Art
If you would invest 23.00 in Takung Art Co on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Takung Art Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.26% |
| Values | Daily Returns |
Kidpik Corp vs. Takung Art Co
Performance |
| Timeline |
| Kidpik Corp |
| Takung Art |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kidpik Corp and Takung Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidpik Corp and Takung Art
The main advantage of trading using opposite Kidpik Corp and Takung Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidpik Corp position performs unexpectedly, Takung Art 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 Takung Art will offset losses from the drop in Takung Art'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 |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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