Correlation Between Natural Health and Tillys
Can any of the company-specific risk be diversified away by investing in both Natural Health and Tillys 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 Natural Health and Tillys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Health Trend and Tillys Inc, you can compare the effects of market volatilities on Natural Health and Tillys 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 Natural Health with a short position of Tillys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Health and Tillys.
Diversification Opportunities for Natural Health and Tillys
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natural and Tillys is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Natural Health Trend and Tillys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tillys Inc and Natural Health 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 Natural Health Trend are associated (or correlated) with Tillys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tillys Inc has no effect on the direction of Natural Health i.e., Natural Health and Tillys go up and down completely randomly.
Pair Corralation between Natural Health and Tillys
Given the investment horizon of 90 days Natural Health Trend is expected to under-perform the Tillys. In addition to that, Natural Health is 1.28 times more volatile than Tillys Inc. It trades about -0.07 of its total potential returns per unit of risk. Tillys Inc is currently generating about 0.0 per unit of volatility. If you would invest 199.00 in Tillys Inc on September 7, 2025 and sell it today you would lose (19.00) from holding Tillys Inc or give up 9.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Health Trend vs. Tillys Inc
Performance |
| Timeline |
| Natural Health Trend |
| Tillys Inc |
Natural Health and Tillys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Health and Tillys
The main advantage of trading using opposite Natural Health and Tillys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Health position performs unexpectedly, Tillys 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 Tillys will offset losses from the drop in Tillys' long position.| Natural Health vs. Environmental Packaging Technologies | Natural Health vs. Critic Clothing | Natural Health vs. Olympic Steel | Natural Health vs. Tree Island Steel |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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