Correlation Between Kidpik Corp and Bravada Intl

Can any of the company-specific risk be diversified away by investing in both Kidpik Corp and Bravada Intl 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 Bravada Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kidpik Corp and Bravada Intl, you can compare the effects of market volatilities on Kidpik Corp and Bravada Intl 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 Bravada Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kidpik Corp and Bravada Intl.

Diversification Opportunities for Kidpik Corp and Bravada Intl

0.0

Correlation Coefficient

Kidpik Corp  Bravada Intl

Pay attention - limited upside

The 3 months correlation between Kidpik and Bravada is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kidpik Corp and Bravada Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravada Intl 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 Bravada Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravada Intl has no effect on the direction of Kidpik Corp i.e., Kidpik Corp and Bravada Intl go up and down completely randomly.

Pair Corralation between Kidpik Corp and Bravada Intl

If you would invest  0.01  in Bravada Intl on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Bravada Intl or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	70.97%
Values	Daily Returns

Kidpik Corp  vs.  Bravada Intl

Kidpik Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kidpik Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's forward indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bravada Intl

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bravada Intl has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Bravada Intl is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Kidpik Corp and Bravada Intl

The main advantage of trading using opposite Kidpik Corp and Bravada Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kidpik Corp position performs unexpectedly, Bravada Intl 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 Bravada Intl will offset losses from the drop in Bravada Intl's long position.

The idea behind Kidpik Corp and Bravada Intl pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.