Correlation Between Optimi Health and DAVIDsTEA
Can any of the company-specific risk be diversified away by investing in both Optimi Health and DAVIDsTEA 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 Optimi Health and DAVIDsTEA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optimi Health Corp and DAVIDsTEA, you can compare the effects of market volatilities on Optimi Health and DAVIDsTEA 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 Optimi Health with a short position of DAVIDsTEA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optimi Health and DAVIDsTEA.
Diversification Opportunities for Optimi Health and DAVIDsTEA
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Optimi and DAVIDsTEA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Optimi Health Corp and DAVIDsTEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAVIDsTEA and Optimi 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 Optimi Health Corp are associated (or correlated) with DAVIDsTEA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAVIDsTEA has no effect on the direction of Optimi Health i.e., Optimi Health and DAVIDsTEA go up and down completely randomly.
Pair Corralation between Optimi Health and DAVIDsTEA
Assuming the 90 days horizon Optimi Health Corp is expected to generate 1.14 times more return on investment than DAVIDsTEA. However, Optimi Health is 1.14 times more volatile than DAVIDsTEA. It trades about 0.22 of its potential returns per unit of risk. DAVIDsTEA is currently generating about -0.04 per unit of risk. 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 |
Optimi Health Corp vs. DAVIDsTEA
Performance |
| Timeline |
| Optimi Health Corp |
| DAVIDsTEA |
Optimi Health and DAVIDsTEA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optimi Health and DAVIDsTEA
The main advantage of trading using opposite Optimi Health and DAVIDsTEA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optimi Health position performs unexpectedly, DAVIDsTEA 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 DAVIDsTEA will offset losses from the drop in DAVIDsTEA's long position.| Optimi Health vs. Atlantic Sapphire ASA | Optimi Health vs. Golden Agri Resources | Optimi Health vs. Preferred Commerce | Optimi Health vs. BioForce Nanosciences Holdings |
| DAVIDsTEA vs. Burcon NutraScience Corp | DAVIDsTEA vs. Elamex SA de | DAVIDsTEA vs. Boosh Plant Based Brands | DAVIDsTEA vs. Big Rock Brewery |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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