Correlation Between Greenlane Holdings and Hour Loop
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Hour Loop 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 Greenlane Holdings and Hour Loop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Hour Loop, you can compare the effects of market volatilities on Greenlane Holdings and Hour Loop 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 Greenlane Holdings with a short position of Hour Loop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Hour Loop.
Diversification Opportunities for Greenlane Holdings and Hour Loop
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenlane and Hour is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Hour Loop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hour Loop and Greenlane 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 Greenlane Holdings are associated (or correlated) with Hour Loop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hour Loop has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Hour Loop go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Hour Loop
Given the investment horizon of 90 days Greenlane Holdings is expected to under-perform the Hour Loop. But the stock apears to be less risky and, when comparing its historical volatility, Greenlane Holdings is 11.97 times less risky than Hour Loop. The stock trades about -0.06 of its potential returns per unit of risk. The Hour Loop is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Hour Loop on October 22, 2024 and sell it today you would earn a total of 76.00 from holding Hour Loop or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenlane Holdings vs. Hour Loop
Performance |
| Timeline |
| Greenlane Holdings |
| Hour Loop |
Greenlane Holdings and Hour Loop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Hour Loop
The main advantage of trading using opposite Greenlane Holdings and Hour Loop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Hour Loop 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 Hour Loop will offset losses from the drop in Hour Loop's long position.| Greenlane Holdings vs. 1606 Corp | Greenlane Holdings vs. PT Hanjaya Mandala | Greenlane Holdings vs. Green Globe International | Greenlane Holdings vs. Kaival Brands Innovations |
| Hour Loop vs. Qurate Retail Series | Hour Loop vs. iPower Inc | Hour Loop vs. MOGU Inc | Hour Loop vs. Qurate Retail |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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