Correlation Between QRTEB Old and Kidpik Corp

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

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

Diversification Opportunities for QRTEB Old and Kidpik Corp

0.81

Correlation Coefficient

QRTEB Old  Kidpik Corp

Very poor diversification

The 3 months correlation between QRTEB and Kidpik is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding QRTEB Old and Kidpik Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidpik Corp and QRTEB Old 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 QRTEB Old 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 QRTEB Old i.e., QRTEB Old and Kidpik Corp go up and down completely randomly.

Pair Corralation between QRTEB Old and Kidpik Corp

Assuming the 90 days horizon QRTEB Old is expected to generate 0.25 times more return on investment than Kidpik Corp. However, QRTEB Old is 4.06 times less risky than Kidpik Corp. It trades about -0.2 of its potential returns per unit of risk. Kidpik Corp is currently generating about -0.18 per unit of risk. If you would invest  307.00  in QRTEB Old on December 29, 2024 and sell it today you would lose (107.00) from holding QRTEB Old or give up 34.85% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	86.05%
Values	Daily Returns

QRTEB Old  vs.  Kidpik Corp

QRTEB Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days QRTEB Old 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 technical and fundamental indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

Pair Trading with QRTEB Old and Kidpik Corp

The main advantage of trading using opposite QRTEB Old and Kidpik Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QRTEB Old 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.

The idea behind QRTEB Old and Kidpik Corp 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.