Correlation Between Greenlane Holdings and Vector
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Vector 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 Vector into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Vector Group, you can compare the effects of market volatilities on Greenlane Holdings and Vector 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 Vector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Vector.
Diversification Opportunities for Greenlane Holdings and Vector
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenlane and Vector is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Vector Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vector 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 Vector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vector Group has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Vector go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Vector
Given the investment horizon of 90 days Greenlane Holdings is expected to generate 10.77 times more return on investment than Vector. However, Greenlane Holdings is 10.77 times more volatile than Vector Group. It trades about 0.01 of its potential returns per unit of risk. Vector Group is currently generating about 0.05 per unit of risk. If you would invest 3,014 in Greenlane Holdings on August 31, 2024 and sell it today you would lose (2,831) from holding Greenlane Holdings or give up 93.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.08% |
| Values | Daily Returns |
Greenlane Holdings vs. Vector Group
Performance |
| Timeline |
| Greenlane Holdings |
| Vector Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenlane Holdings and Vector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Vector
The main advantage of trading using opposite Greenlane Holdings and Vector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Vector 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 Vector will offset losses from the drop in Vector'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 |
| Vector vs. Universal | Vector vs. Imperial Brands PLC | Vector vs. Japan Tobacco ADR | Vector 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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