Correlation Between Kidpik Corp and Ozon Holdings

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

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

Diversification Opportunities for Kidpik Corp and Ozon Holdings

0.0

Correlation Coefficient

Kidpik Corp  Ozon Holdings

Pay attention - limited upside

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

Pair Corralation between Kidpik Corp and Ozon Holdings

If you would invest (100.00) in Ozon Holdings PLC on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Ozon Holdings PLC or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Kidpik Corp  vs.  Ozon Holdings PLC

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 weak 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.

Ozon Holdings PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ozon Holdings PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Ozon Holdings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Kidpik Corp and Ozon Holdings

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

The idea behind Kidpik Corp and Ozon Holdings PLC 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.

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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.