Correlation Between Greenlane Holdings and Smoore International
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Smoore International 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 Smoore International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Smoore International Holdings, you can compare the effects of market volatilities on Greenlane Holdings and Smoore International 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 Smoore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Smoore International.
Diversification Opportunities for Greenlane Holdings and Smoore International
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenlane and Smoore is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Smoore International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smoore International 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 Smoore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smoore International has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Smoore International go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Smoore International
If you would invest 122.00 in Smoore International Holdings on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Smoore International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Greenlane Holdings vs. Smoore International Holdings
Performance |
| Timeline |
| Greenlane Holdings |
| Smoore International |
Greenlane Holdings and Smoore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Smoore International
The main advantage of trading using opposite Greenlane Holdings and Smoore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Smoore International 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 Smoore International will offset losses from the drop in Smoore International'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 |
| Smoore International vs. 22nd Century Group | Smoore International vs. British American Tobacco | Smoore International 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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