Correlation Between Kidpik Corp and WISH Old
Can any of the company-specific risk be diversified away by investing in both Kidpik Corp and WISH Old 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 WISH Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kidpik Corp and WISH Old, you can compare the effects of market volatilities on Kidpik Corp and WISH Old 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 WISH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidpik Corp and WISH Old.
Diversification Opportunities for Kidpik Corp and WISH Old
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kidpik and WISH is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kidpik Corp and WISH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISH Old 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 WISH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISH Old has no effect on the direction of Kidpik Corp i.e., Kidpik Corp and WISH Old go up and down completely randomly.
Pair Corralation between Kidpik Corp and WISH Old
If you would invest 237.00 in Kidpik Corp on September 1, 2024 and sell it today you would lose (10.00) from holding Kidpik Corp or give up 4.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Kidpik Corp vs. WISH Old
Performance |
| Timeline |
| Kidpik Corp |
| WISH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kidpik Corp and WISH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kidpik Corp and WISH Old
The main advantage of trading using opposite Kidpik Corp and WISH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidpik Corp position performs unexpectedly, WISH Old 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 WISH Old will offset losses from the drop in WISH Old'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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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