Correlation Between High Tide and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both High Tide and Leafly Holdings 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 High Tide and Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Tide and Leafly Holdings, you can compare the effects of market volatilities on High Tide and Leafly Holdings 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 High Tide with a short position of Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Tide and Leafly Holdings.
Diversification Opportunities for High Tide and Leafly Holdings
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between High and Leafly is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding High Tide and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and High Tide 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 High Tide are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of High Tide i.e., High Tide and Leafly Holdings go up and down completely randomly.
Pair Corralation between High Tide and Leafly Holdings
Given the investment horizon of 90 days High Tide is expected to generate 0.36 times more return on investment than Leafly Holdings. However, High Tide is 2.79 times less risky than Leafly Holdings. It trades about 0.0 of its potential returns per unit of risk. Leafly Holdings is currently generating about -0.18 per unit of risk. If you would invest 286.00 in High Tide on November 1, 2024 and sell it today you would lose (14.00) from holding High Tide or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 88.33% |
| Values | Daily Returns |
High Tide vs. Leafly Holdings
Performance |
| Timeline |
| High Tide |
| Leafly Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
High Tide and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Tide and Leafly Holdings
The main advantage of trading using opposite High Tide and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Tide position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.| High Tide vs. SunLink Health Systems | High Tide vs. Kiaro Holdings Corp | High Tide vs. China Jo Jo Drugstores | High Tide vs. PetMed Express |
| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. China Jo Jo Drugstores |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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