Correlation Between DAVIDsTEA and Optimi Health
Can any of the company-specific risk be diversified away by investing in both DAVIDsTEA and Optimi Health 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 DAVIDsTEA and Optimi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DAVIDsTEA and Optimi Health Corp, you can compare the effects of market volatilities on DAVIDsTEA and Optimi Health 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 DAVIDsTEA with a short position of Optimi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAVIDsTEA and Optimi Health.
Diversification Opportunities for DAVIDsTEA and Optimi Health
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DAVIDsTEA and Optimi is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding DAVIDsTEA and Optimi Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optimi Health Corp and DAVIDsTEA 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 DAVIDsTEA are associated (or correlated) with Optimi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optimi Health Corp has no effect on the direction of DAVIDsTEA i.e., DAVIDsTEA and Optimi Health go up and down completely randomly.
Pair Corralation between DAVIDsTEA and Optimi Health
Assuming the 90 days horizon DAVIDsTEA is expected to under-perform the Optimi Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, DAVIDsTEA is 1.14 times less risky than Optimi Health. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Optimi Health Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Optimi Health Corp on August 5, 2025 and sell it today you would earn a total of 13.00 from holding Optimi Health Corp or generate 118.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAVIDsTEA vs. Optimi Health Corp
Performance |
| Timeline |
| DAVIDsTEA |
| Optimi Health Corp |
DAVIDsTEA and Optimi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DAVIDsTEA and Optimi Health
The main advantage of trading using opposite DAVIDsTEA and Optimi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAVIDsTEA position performs unexpectedly, Optimi Health 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 Optimi Health will offset losses from the drop in Optimi Health's long position.| DAVIDsTEA vs. Burcon NutraScience Corp | DAVIDsTEA vs. Elamex SA de | DAVIDsTEA vs. Boosh Plant Based Brands | DAVIDsTEA vs. Big Rock Brewery |
| Optimi Health vs. Atlantic Sapphire ASA | Optimi Health vs. Golden Agri Resources | Optimi Health vs. Preferred Commerce | Optimi Health vs. BioForce Nanosciences 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |