Correlation Between TAAT Global and Greenlane Holdings
Can any of the company-specific risk be diversified away by investing in both TAAT Global 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 TAAT Global and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAAT Global Alternatives and Greenlane Holdings, you can compare the effects of market volatilities on TAAT Global 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 TAAT Global with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAAT Global and Greenlane Holdings.
Diversification Opportunities for TAAT Global and Greenlane Holdings
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between TAAT and Greenlane is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding TAAT Global Alternatives and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and TAAT Global 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 TAAT Global Alternatives 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 TAAT Global i.e., TAAT Global and Greenlane Holdings go up and down completely randomly.
Pair Corralation between TAAT Global and Greenlane Holdings
Assuming the 90 days horizon TAAT Global Alternatives is expected to generate 0.81 times more return on investment than Greenlane Holdings. However, TAAT Global Alternatives is 1.23 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 0.04 per unit of risk. If you would invest 25.00 in TAAT Global Alternatives on November 3, 2024 and sell it today you would lose (12.00) from holding TAAT Global Alternatives or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
TAAT Global Alternatives vs. Greenlane Holdings
Performance |
| Timeline |
| TAAT Global Alternatives |
| Greenlane Holdings |
TAAT Global and Greenlane Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAAT Global and Greenlane Holdings
The main advantage of trading using opposite TAAT Global and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAAT Global 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.| TAAT Global vs. Greenlane Holdings | TAAT Global vs. Turning Point Brands | TAAT Global vs. Green Globe International | TAAT Global vs. Kaival Brands Innovations |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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