Correlation Between Harte Hanks and Kid Castle

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

By analyzing existing cross correlation between Harte Hanks and Kid Castle Educational, you can compare the effects of market volatilities on Harte Hanks and Kid Castle 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 Harte Hanks with a short position of Kid Castle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harte Hanks and Kid Castle.

Diversification Opportunities for Harte Hanks and Kid Castle

0.0

Correlation Coefficient

Harte Hanks  Kid Castle

Pay attention - limited upside

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

Pair Corralation between Harte Hanks and Kid Castle

If you would invest  0.04  in Kid Castle Educational on May 7, 2025 and sell it today you would earn a total of  0.00  from holding Kid Castle Educational or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Harte Hanks  vs.  Kid Castle Educational

Harte Hanks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harte Hanks 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 technical indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Kid Castle Educational

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kid Castle Educational has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Kid Castle is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Harte Hanks and Kid Castle

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

The idea behind Harte Hanks and Kid Castle Educational 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.