Correlation Between Philip Morris and Greenlane Holdings
Can any of the company-specific risk be diversified away by investing in both Philip Morris 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 Philip Morris and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philip Morris International and Greenlane Holdings, you can compare the effects of market volatilities on Philip Morris 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 Philip Morris with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philip Morris and Greenlane Holdings.
Diversification Opportunities for Philip Morris and Greenlane Holdings
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philip and Greenlane is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Philip Morris International and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and Philip Morris 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 Philip Morris International 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 Philip Morris i.e., Philip Morris and Greenlane Holdings go up and down completely randomly.
Pair Corralation between Philip Morris and Greenlane Holdings
Allowing for the 90-day total investment horizon Philip Morris International is expected to under-perform the Greenlane Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Philip Morris International is 12.34 times less risky than Greenlane Holdings. The stock trades about -0.05 of its potential returns per unit of risk. The Greenlane Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 225.00 in Greenlane Holdings on August 25, 2024 and sell it today you would lose (45.00) from holding Greenlane Holdings or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philip Morris International vs. Greenlane Holdings
Performance |
| Timeline |
| Philip Morris Intern |
| Greenlane Holdings |
Philip Morris and Greenlane Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philip Morris and Greenlane Holdings
The main advantage of trading using opposite Philip Morris and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philip Morris 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.| Philip Morris vs. British American Tobacco | Philip Morris vs. Universal | Philip Morris vs. Imperial Brands PLC | Philip Morris vs. Altria 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |