Correlation Between Jd Com Inc and Kidpik Corp
Can any of the company-specific risk be diversified away by investing in both Jd Com Inc 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 Jd Com Inc and Kidpik Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jd Com Inc and Kidpik Corp, you can compare the effects of market volatilities on Jd Com Inc 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 Jd Com Inc with a short position of Kidpik Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jd Com Inc and Kidpik Corp.
Diversification Opportunities for Jd Com Inc and Kidpik Corp
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between JDCMF and Kidpik is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jd Com Inc and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and Jd Com Inc 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 Jd Com Inc 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 Jd Com Inc i.e., Jd Com Inc and Kidpik Corp go up and down completely randomly.
Pair Corralation between Jd Com Inc and Kidpik Corp
Assuming the 90 days horizon Jd Com Inc is expected to generate 0.21 times more return on investment than Kidpik Corp. However, Jd Com Inc is 4.69 times less risky than Kidpik Corp. It trades about 0.06 of its potential returns per unit of risk. Kidpik Corp is currently generating about -0.25 per unit of risk. If you would invest 1,920 in Jd Com Inc on December 1, 2024 and sell it today you would earn a total of 223.00 from holding Jd Com Inc or generate 11.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.36% |
Values | Daily Returns |
Jd Com Inc vs. Kidpik Corp
Performance |
Timeline |
Jd Com Inc |
Kidpik Corp |
Jd Com Inc and Kidpik Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jd Com Inc and Kidpik Corp
The main advantage of trading using opposite Jd Com Inc and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jd Com Inc 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.Jd Com Inc vs. Bravada Intl | Jd Com Inc vs. Allegroeu SA | Jd Com Inc vs. Redbubble Limited | Jd Com Inc vs. Meituan |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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