Correlation Between Cricut and Rent The

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

By analyzing existing cross correlation between Cricut Inc and Rent the Runway, you can compare the effects of market volatilities on Cricut and Rent The 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 Cricut with a short position of Rent The. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Rent The.

Diversification Opportunities for Cricut and Rent The

0.32

Correlation Coefficient

Cricut  Rent The

Weak diversification

The 3 months correlation between Cricut and Rent is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Rent the Runway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rent the Runway and Cricut 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 Cricut Inc are associated (or correlated) with Rent The. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rent the Runway has no effect on the direction of Cricut i.e., Cricut and Rent The go up and down completely randomly.

Pair Corralation between Cricut and Rent The

Given the investment horizon of 90 days Cricut Inc is expected to generate 0.46 times more return on investment than Rent The. However, Cricut Inc is 2.17 times less risky than Rent The. It trades about 0.0 of its potential returns per unit of risk. Rent the Runway is currently generating about -0.01 per unit of risk. If you would invest  554.00  in Cricut Inc on May 6, 2025 and sell it today you would lose (82.00) from holding Cricut Inc or give up 14.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Cricut Inc  vs.  Rent the Runway

Cricut Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cricut Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, Cricut may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Rent the Runway

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Rent the Runway are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Rent The unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cricut and Rent The

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

The idea behind Cricut Inc and Rent the Runway 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.