Correlation Between GreenLight Biosciences and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both GreenLight Biosciences and Leafly Holdings 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 GreenLight Biosciences and Leafly Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenLight Biosciences Holdings and Leafly Holdings, you can compare the effects of market volatilities on GreenLight Biosciences and Leafly Holdings 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 GreenLight Biosciences with a short position of Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenLight Biosciences and Leafly Holdings.
Diversification Opportunities for GreenLight Biosciences and Leafly Holdings
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenLight and Leafly is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding GreenLight Biosciences Holding and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings and GreenLight Biosciences 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 GreenLight Biosciences Holdings are associated (or correlated) with Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of GreenLight Biosciences i.e., GreenLight Biosciences and Leafly Holdings go up and down completely randomly.
Pair Corralation between GreenLight Biosciences and Leafly Holdings
If you would invest 2.20 in GreenLight Biosciences Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding GreenLight Biosciences Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
GreenLight Biosciences Holding vs. Leafly Holdings
Performance |
| Timeline |
| GreenLight Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Leafly Holdings |
GreenLight Biosciences and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenLight Biosciences and Leafly Holdings
The main advantage of trading using opposite GreenLight Biosciences and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenLight Biosciences position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' long position.The idea behind GreenLight Biosciences Holdings and Leafly Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Leafly Holdings vs. Kiaro Holdings Corp | Leafly Holdings vs. Allstar Health Brands | Leafly Holdings vs. Aquagold International | Leafly Holdings vs. Morningstar Unconstrained Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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