Correlation Between Spectral Med and High Tide
Can any of the company-specific risk be diversified away by investing in both Spectral Med 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 Spectral Med and High Tide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectral Med and High Tide, you can compare the effects of market volatilities on Spectral Med 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 Spectral Med with a short position of High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectral Med and High Tide.
Diversification Opportunities for Spectral Med and High Tide
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spectral and High is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Spectral Med and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide and Spectral Med 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 Spectral Med 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 Spectral Med i.e., Spectral Med and High Tide go up and down completely randomly.
Pair Corralation between Spectral Med and High Tide
Assuming the 90 days trading horizon Spectral Med is expected to generate 1.34 times more return on investment than High Tide. However, Spectral Med is 1.34 times more volatile than High Tide. It trades about -0.06 of its potential returns per unit of risk. High Tide is currently generating about -0.32 per unit of risk. If you would invest 142.00 in Spectral Med on September 12, 2025 and sell it today you would lose (14.00) from holding Spectral Med or give up 9.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectral Med vs. High Tide
Performance |
| Timeline |
| Spectral Med |
| High Tide |
Spectral Med and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectral Med and High Tide
The main advantage of trading using opposite Spectral Med and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectral Med 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.| Spectral Med vs. High Tide | Spectral Med vs. Cipher Pharmaceuticals | Spectral Med vs. Aurora Cannabis | Spectral Med vs. Fennec Pharmaceuticals |
| High Tide vs. Spectral Med | High Tide vs. Aurora Cannabis | High Tide vs. Canopy Growth Corp | High Tide vs. Cipher Pharmaceuticals |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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