Correlation Between HealthEquity and Ollies Bargain

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

By analyzing existing cross correlation between HealthEquity and Ollies Bargain Outlet, you can compare the effects of market volatilities on HealthEquity and Ollies Bargain 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 HealthEquity with a short position of Ollies Bargain. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthEquity and Ollies Bargain.

Diversification Opportunities for HealthEquity and Ollies Bargain

0.13

Correlation Coefficient

HealthEquity  Ollies Bargain

Average diversification

The 3 months correlation between HealthEquity and Ollies is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding HealthEquity and Ollies Bargain Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ollies Bargain Outlet and HealthEquity 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 HealthEquity are associated (or correlated) with Ollies Bargain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ollies Bargain Outlet has no effect on the direction of HealthEquity i.e., HealthEquity and Ollies Bargain go up and down completely randomly.

Pair Corralation between HealthEquity and Ollies Bargain

Considering the 90-day investment horizon HealthEquity is expected to generate 25.27 times less return on investment than Ollies Bargain. But when comparing it to its historical volatility, HealthEquity is 1.03 times less risky than Ollies Bargain. It trades about 0.01 of its potential returns per unit of risk. Ollies Bargain Outlet is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  11,043  in Ollies Bargain Outlet on May 7, 2025 and sell it today you would earn a total of  2,970  from holding Ollies Bargain Outlet or generate 26.89% return on investment over 90 days.

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

HealthEquity  vs.  Ollies Bargain Outlet

HealthEquity

Risk-Adjusted Performance

Very Weak

Over the last 90 days HealthEquity has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, HealthEquity is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Ollies Bargain Outlet

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ollies Bargain Outlet are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile essential indicators, Ollies Bargain demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HealthEquity and Ollies Bargain

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

The idea behind HealthEquity and Ollies Bargain Outlet 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.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.