Correlation Between Crimson Wine and KinderCare Learning

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

By analyzing existing cross correlation between Crimson Wine and KinderCare Learning Companies,, you can compare the effects of market volatilities on Crimson Wine and KinderCare Learning 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 Crimson Wine with a short position of KinderCare Learning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crimson Wine and KinderCare Learning.

Diversification Opportunities for Crimson Wine and KinderCare Learning

-0.25

Correlation Coefficient

Crimson Wine  KinderCare Learning

Very good diversification

The 3 months correlation between Crimson and KinderCare is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Crimson Wine and KinderCare Learning Companies, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KinderCare Learning and Crimson Wine 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 Crimson Wine are associated (or correlated) with KinderCare Learning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KinderCare Learning has no effect on the direction of Crimson Wine i.e., Crimson Wine and KinderCare Learning go up and down completely randomly.

Pair Corralation between Crimson Wine and KinderCare Learning

Given the investment horizon of 90 days Crimson Wine is expected to generate 0.57 times more return on investment than KinderCare Learning. However, Crimson Wine is 1.75 times less risky than KinderCare Learning. It trades about 0.03 of its potential returns per unit of risk. KinderCare Learning Companies, is currently generating about -0.13 per unit of risk. If you would invest  548.00  in Crimson Wine on May 6, 2025 and sell it today you would earn a total of  12.00  from holding Crimson Wine or generate 2.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Crimson Wine  vs.  KinderCare Learning Companies,

Crimson Wine

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Crimson Wine are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, Crimson Wine is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

KinderCare Learning

Risk-Adjusted Performance

Very Weak

Over the last 90 days KinderCare Learning Companies, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Crimson Wine and KinderCare Learning

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

The idea behind Crimson Wine and KinderCare Learning Companies, 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.