Correlation Between Greenlane Holdings and Philip Morris
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Philip Morris 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 Philip Morris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Philip Morris International, you can compare the effects of market volatilities on Greenlane Holdings and Philip Morris 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 Philip Morris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Philip Morris.
Diversification Opportunities for Greenlane Holdings and Philip Morris
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenlane and Philip is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Philip Morris International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philip Morris Intern 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 Philip Morris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philip Morris Intern has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Philip Morris go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Philip Morris
Given the investment horizon of 90 days Greenlane Holdings is expected to under-perform the Philip Morris. In addition to that, Greenlane Holdings is 3.09 times more volatile than Philip Morris International. It trades about -0.58 of its total potential returns per unit of risk. Philip Morris International is currently generating about 0.05 per unit of volatility. If you would invest 13,050 in Philip Morris International on August 28, 2024 and sell it today you would earn a total of 178.00 from holding Philip Morris International or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenlane Holdings vs. Philip Morris International
Performance |
| Timeline |
| Greenlane Holdings |
| Philip Morris Intern |
Greenlane Holdings and Philip Morris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Philip Morris
The main advantage of trading using opposite Greenlane Holdings and Philip Morris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Philip Morris 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 Philip Morris will offset losses from the drop in Philip Morris' long position.| Greenlane Holdings vs. Steven Madden | Greenlane Holdings vs. Vera Bradley | Greenlane Holdings vs. Caleres | Greenlane Holdings vs. Rocky Brands |
| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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