Correlation Between Greenlane Holdings and Altria
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Altria 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 Altria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Altria Group, you can compare the effects of market volatilities on Greenlane Holdings and Altria 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 Altria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Altria.
Diversification Opportunities for Greenlane Holdings and Altria
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greenlane and Altria is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Altria Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altria Group 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 Altria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altria Group has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Altria go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Altria
Given the investment horizon of 90 days Greenlane Holdings is expected to generate 23.31 times more return on investment than Altria. However, Greenlane Holdings is 23.31 times more volatile than Altria Group. It trades about 0.04 of its potential returns per unit of risk. Altria Group is currently generating about 0.13 per unit of risk. If you would invest 452.00 in Greenlane Holdings on November 3, 2024 and sell it today you would lose (305.00) from holding Greenlane Holdings or give up 67.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Greenlane Holdings vs. Altria Group
Performance |
| Timeline |
| Greenlane Holdings |
| Altria Group |
Greenlane Holdings and Altria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Altria
The main advantage of trading using opposite Greenlane Holdings and Altria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Altria 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 Altria will offset losses from the drop in Altria'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 |
| Altria vs. British American Tobacco | Altria vs. Universal | Altria vs. Imperial Brands PLC | Altria vs. Philip Morris International |
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.
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