Correlation Between Heavitree Brewery and OptiBiotix Health

Can any of the company-specific risk be diversified away by investing in both Heavitree Brewery and OptiBiotix 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 Heavitree Brewery and OptiBiotix Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Heavitree Brewery and OptiBiotix Health Plc, you can compare the effects of market volatilities on Heavitree Brewery and OptiBiotix 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 Heavitree Brewery with a short position of OptiBiotix Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heavitree Brewery and OptiBiotix Health.

Diversification Opportunities for Heavitree Brewery and OptiBiotix Health

-0.36

Correlation Coefficient

Heavitree Brewery  OptiBiotix Health

Very good diversification

The 3 months correlation between Heavitree and OptiBiotix is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Heavitree Brewery and OptiBiotix Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiBiotix Health Plc and Heavitree Brewery 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 Heavitree Brewery are associated (or correlated) with OptiBiotix Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiBiotix Health Plc has no effect on the direction of Heavitree Brewery i.e., Heavitree Brewery and OptiBiotix Health go up and down completely randomly.

Pair Corralation between Heavitree Brewery and OptiBiotix Health

Assuming the 90 days trading horizon Heavitree Brewery is expected to generate 0.04 times more return on investment than OptiBiotix Health. However, Heavitree Brewery is 24.91 times less risky than OptiBiotix Health. It trades about 0.13 of its potential returns per unit of risk. OptiBiotix Health Plc is currently generating about -0.17 per unit of risk. If you would invest  21,225  in Heavitree Brewery on April 24, 2025 and sell it today you would earn a total of  275.00  from holding Heavitree Brewery or generate 1.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Heavitree Brewery  vs.  OptiBiotix Health Plc

Heavitree Brewery

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Heavitree Brewery are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Heavitree Brewery is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

OptiBiotix Health Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days OptiBiotix Health Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Heavitree Brewery and OptiBiotix Health

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

The idea behind Heavitree Brewery and OptiBiotix Health Plc 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.