Correlation Between Qurate Retail and Kidpik Corp
Can any of the company-specific risk be diversified away by investing in both Qurate Retail 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 Qurate Retail and Kidpik Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qurate Retail Series and Kidpik Corp, you can compare the effects of market volatilities on Qurate Retail 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 Qurate Retail with a short position of Kidpik Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qurate Retail and Kidpik Corp.
Diversification Opportunities for Qurate Retail and Kidpik Corp
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qurate and Kidpik is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Qurate Retail Series and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and Qurate Retail 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 Qurate Retail Series 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 Qurate Retail i.e., Qurate Retail and Kidpik Corp go up and down completely randomly.
Pair Corralation between Qurate Retail and Kidpik Corp
Assuming the 90 days horizon Qurate Retail Series is expected to under-perform the Kidpik Corp. But the stock apears to be less risky and, when comparing its historical volatility, Qurate Retail Series is 1.33 times less risky than Kidpik Corp. The stock trades about -0.4 of its potential returns per unit of risk. The Kidpik Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 243.00 in Kidpik Corp on August 24, 2024 and sell it today you would lose (20.00) from holding Kidpik Corp or give up 8.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qurate Retail Series vs. Kidpik Corp
Performance |
| Timeline |
| Qurate Retail Series |
| Kidpik Corp |
Qurate Retail and Kidpik Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qurate Retail and Kidpik Corp
The main advantage of trading using opposite Qurate Retail and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qurate Retail 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.| Qurate Retail vs. Qurate Retail | Qurate Retail vs. Hour Loop | Qurate Retail vs. Kidpik Corp | Qurate Retail vs. Liquidity Services |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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