Correlation Between Allstar Health and High Tide
Can any of the company-specific risk be diversified away by investing in both Allstar Health and High Tide 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 Allstar Health and High Tide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allstar Health Brands and High Tide, you can compare the effects of market volatilities on Allstar Health and High Tide 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 Allstar Health with a short position of High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allstar Health and High Tide.
Diversification Opportunities for Allstar Health and High Tide
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allstar and High is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Allstar Health Brands and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide and Allstar Health 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 Allstar Health Brands are associated (or correlated) with High Tide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Tide has no effect on the direction of Allstar Health i.e., Allstar Health and High Tide go up and down completely randomly.
Pair Corralation between Allstar Health and High Tide
Given the investment horizon of 90 days Allstar Health Brands is expected to generate 3.32 times more return on investment than High Tide. However, Allstar Health is 3.32 times more volatile than High Tide. It trades about 0.04 of its potential returns per unit of risk. High Tide is currently generating about 0.1 per unit of risk. If you would invest 0.05 in Allstar Health Brands on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Allstar Health Brands or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allstar Health Brands vs. High Tide
Performance |
| Timeline |
| Allstar Health Brands |
| High Tide |
Allstar Health and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allstar Health and High Tide
The main advantage of trading using opposite Allstar Health and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allstar Health position performs unexpectedly, High Tide 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 High Tide will offset losses from the drop in High Tide's long position.| Allstar Health vs. Indo Global Exchange | Allstar Health vs. TPT Global Tech | Allstar Health vs. Valiant Eagle | Allstar Health vs. Sixty Six Oilfield |
| High Tide vs. Leafly Holdings | High Tide vs. SunLink Health Systems | High Tide vs. Kiaro Holdings Corp | High Tide vs. Leafly Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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