Correlation Between Healthy Choice and High Tide
Can any of the company-specific risk be diversified away by investing in both Healthy Choice 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 Healthy Choice and High Tide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthy Choice Wellness and High Tide, you can compare the effects of market volatilities on Healthy Choice 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 Healthy Choice with a short position of High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthy Choice and High Tide.
Diversification Opportunities for Healthy Choice and High Tide
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Healthy and High is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Healthy Choice Wellness and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide and Healthy Choice 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 Healthy Choice Wellness 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 Healthy Choice i.e., Healthy Choice and High Tide go up and down completely randomly.
Pair Corralation between Healthy Choice and High Tide
Given the investment horizon of 90 days Healthy Choice Wellness is expected to generate 25.98 times more return on investment than High Tide. However, Healthy Choice is 25.98 times more volatile than High Tide. It trades about 0.09 of its potential returns per unit of risk. High Tide is currently generating about 0.06 per unit of risk. If you would invest 0.00 in Healthy Choice Wellness on November 9, 2024 and sell it today you would earn a total of 79.00 from holding Healthy Choice Wellness or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.45% |
| Values | Daily Returns |
Healthy Choice Wellness vs. High Tide
Performance |
| Timeline |
| Healthy Choice Wellness |
| High Tide |
Healthy Choice and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthy Choice and High Tide
The main advantage of trading using opposite Healthy Choice and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthy Choice 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.| Healthy Choice vs. National Vision Holdings | Healthy Choice vs. RadNet Inc | Healthy Choice vs. The Joint Corp | Healthy Choice vs. Ameriprise Financial |
| High Tide vs. SunLink Health Systems | High Tide vs. Kiaro Holdings Corp | High Tide vs. China Jo Jo Drugstores | High Tide vs. PetMed Express |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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