Correlation Between High Tide and 1 800

Can any of the company-specific risk be diversified away by investing in both High Tide and 1 800 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 1 800 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between High Tide and 1 800 FLOWERSCOM, you can compare the effects of market volatilities on High Tide and 1 800 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 1 800. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Tide and 1 800.

Diversification Opportunities for High Tide and 1 800

0.22

Correlation Coefficient

High Tide  1 800

Modest diversification

The 3 months correlation between High and FLWS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding High Tide and 1 800 FLOWERSCOM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1 800 FLOWERSCOM 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 1 800. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1 800 FLOWERSCOM has no effect on the direction of High Tide i.e., High Tide and 1 800 go up and down completely randomly.

Pair Corralation between High Tide and 1 800

Given the investment horizon of 90 days High Tide is expected to generate 1.7 times more return on investment than 1 800. However, High Tide is 1.7 times more volatile than 1 800 FLOWERSCOM. It trades about 0.18 of its potential returns per unit of risk. 1 800 FLOWERSCOM is currently generating about 0.0 per unit of risk. If you would invest  211.00  in High Tide on September 18, 2024 and sell it today you would earn a total of  103.00  from holding High Tide or generate 48.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

High Tide  vs.  1 800 FLOWERSCOM

High Tide

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in High Tide are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly abnormal basic indicators, High Tide demonstrated solid returns over the last few months and may actually be approaching a breakup point.

1 800 FLOWERSCOM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 1 800 FLOWERSCOM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, 1 800 is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with High Tide and 1 800

The main advantage of trading using opposite High Tide and 1 800 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Tide position performs unexpectedly, 1 800 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 1 800 will offset losses from the drop in 1 800's long position.

The idea behind High Tide and 1 800 FLOWERSCOM 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.