Correlation Between Greenlane Holdings and Winmark
Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Winmark 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 Winmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlane Holdings and Winmark, you can compare the effects of market volatilities on Greenlane Holdings and Winmark 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 Winmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Winmark.
Diversification Opportunities for Greenlane Holdings and Winmark
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenlane and Winmark is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark 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 Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Winmark go up and down completely randomly.
Pair Corralation between Greenlane Holdings and Winmark
Given the investment horizon of 90 days Greenlane Holdings is expected to generate 12.83 times more return on investment than Winmark. However, Greenlane Holdings is 12.83 times more volatile than Winmark. It trades about 0.04 of its potential returns per unit of risk. Winmark is currently generating about 0.0 per unit of risk. If you would invest 627.00 in Greenlane Holdings on August 26, 2024 and sell it today you would lose (447.00) from holding Greenlane Holdings or give up 71.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenlane Holdings vs. Winmark
Performance |
| Timeline |
| Greenlane Holdings |
| Winmark |
Greenlane Holdings and Winmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlane Holdings and Winmark
The main advantage of trading using opposite Greenlane Holdings and Winmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Winmark 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 Winmark will offset losses from the drop in Winmark's long position.| Greenlane Holdings vs. Steven Madden | Greenlane Holdings vs. Vera Bradley | Greenlane Holdings vs. Caleres | Greenlane Holdings vs. Rocky Brands |
| Winmark vs. Mesa Laboratories | Winmark vs. Utah Medical Products | Winmark vs. Weyco Group | Winmark vs. Diamond Hill Investment |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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