Correlation Between TILT Holdings and Honest

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

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

Diversification Opportunities for TILT Holdings and Honest

0.38

Correlation Coefficient

TILT Holdings  Honest

Weak diversification

The 3 months correlation between TILT and Honest is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TILT Holdings and Honest Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Honest Company and TILT Holdings 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 TILT Holdings are associated (or correlated) with Honest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Honest Company has no effect on the direction of TILT Holdings i.e., TILT Holdings and Honest go up and down completely randomly.

Pair Corralation between TILT Holdings and Honest

Assuming the 90 days horizon TILT Holdings is expected to under-perform the Honest. In addition to that, TILT Holdings is 2.75 times more volatile than Honest Company. It trades about -0.21 of its total potential returns per unit of risk. Honest Company is currently generating about -0.16 per unit of volatility. If you would invest  405.00  in Honest Company on July 20, 2025 and sell it today you would lose (41.00) from holding Honest Company or give up 10.12% of portfolio value over 90 days.

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

TILT Holdings  vs.  Honest Company

TILT Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days TILT Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TILT Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Honest Company

Risk-Adjusted Performance

Weakest

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

Pair Trading with TILT Holdings and Honest

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

The idea behind TILT Holdings and Honest Company 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.