Correlation Between Greenlane Holdings and Macys
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Macys 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 Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Macys Inc, you can compare the effects of market volatilities on Greenlane Holdings and Macys 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 Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Macys.
Diversification Opportunities for Greenlane Holdings and Macys
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenlane and Macys is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Macys go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Macys
Given the investment horizon of 90 days Greenlane Holdings is expected to under-perform the Macys. In addition to that, Greenlane Holdings is 1.03 times more volatile than Macys Inc. It trades about -0.33 of its total potential returns per unit of risk. Macys Inc is currently generating about 0.19 per unit of volatility. If you would invest 1,510 in Macys Inc on September 18, 2024 and sell it today you would earn a total of 162.00 from holding Macys Inc or generate 10.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenlane Holdings vs. Macys Inc
Performance |
| Timeline |
| Greenlane Holdings |
| Macys Inc |
Greenlane Holdings and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Macys
The main advantage of trading using opposite Greenlane Holdings and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Macys 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 Macys will offset losses from the drop in Macys' long position.| Greenlane Holdings vs. Steven Madden | Greenlane Holdings vs. Vera Bradley | Greenlane Holdings vs. Caleres | Greenlane Holdings vs. Wolverine World Wide |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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