Correlation Between Kaival Brands and Greenlane Holdings
Can any of the company-specific risk be diversified away by investing in both Kaival Brands 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 Kaival Brands and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaival Brands Innovations and Greenlane Holdings, you can compare the effects of market volatilities on Kaival Brands 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 Kaival Brands with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaival Brands and Greenlane Holdings.
Diversification Opportunities for Kaival Brands and Greenlane Holdings
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaival and Greenlane is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kaival Brands Innovations and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and Kaival Brands 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 Kaival Brands Innovations 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 Kaival Brands i.e., Kaival Brands and Greenlane Holdings go up and down completely randomly.
Pair Corralation between Kaival Brands and Greenlane Holdings
Given the investment horizon of 90 days Kaival Brands is expected to generate 1.89 times less return on investment than Greenlane Holdings. But when comparing it to its historical volatility, Kaival Brands Innovations is 2.56 times less risky than Greenlane Holdings. It trades about 0.08 of its potential returns per unit of risk. Greenlane Holdings is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Greenlane Holdings on November 3, 2024 and sell it today you would lose (74.00) from holding Greenlane Holdings or give up 34.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kaival Brands Innovations vs. Greenlane Holdings
Performance |
| Timeline |
| Kaival Brands Innovations |
| Greenlane Holdings |
Kaival Brands and Greenlane Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaival Brands and Greenlane Holdings
The main advantage of trading using opposite Kaival Brands and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaival Brands 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.| Kaival Brands vs. Green Globe International | Kaival Brands vs. Greenlane Holdings | Kaival Brands vs. RLX Technology | Kaival Brands vs. 22nd Century Group |
| Greenlane Holdings vs. 1606 Corp | Greenlane Holdings vs. PT Hanjaya Mandala | Greenlane Holdings vs. Green Globe International | Greenlane Holdings vs. Kaival Brands Innovations |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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