Correlation Between Humble Fume and Greenlane Holdings
Can any of the company-specific risk be diversified away by investing in both Humble Fume and Greenlane 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 Humble Fume and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humble Fume and Greenlane Holdings, you can compare the effects of market volatilities on Humble Fume and Greenlane 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 Humble Fume with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humble Fume and Greenlane Holdings.
Diversification Opportunities for Humble Fume and Greenlane Holdings
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Humble and Greenlane is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Humble Fume and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and Humble Fume 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 Humble Fume are associated (or correlated) with Greenlane Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlane Holdings has no effect on the direction of Humble Fume i.e., Humble Fume and Greenlane Holdings go up and down completely randomly.
Pair Corralation between Humble Fume and Greenlane Holdings
If you would invest 5.34 in Humble Fume on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Humble Fume or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Humble Fume vs. Greenlane Holdings
Performance |
| Timeline |
| Humble Fume |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greenlane Holdings |
Humble Fume and Greenlane Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humble Fume and Greenlane Holdings
The main advantage of trading using opposite Humble Fume and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humble Fume position performs unexpectedly, Greenlane 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 Greenlane Holdings will offset losses from the drop in Greenlane Holdings' long position.| Humble Fume vs. PT Hanjaya Mandala | Humble Fume vs. Greenlane Holdings | Humble Fume vs. Pyxus International | Humble Fume vs. 22nd Century Group |
| Greenlane Holdings vs. Steven Madden | Greenlane Holdings vs. Vera Bradley | Greenlane Holdings vs. Caleres | Greenlane Holdings vs. Rocky Brands |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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