Correlation Between Turning Point and Greenlane Holdings
Can any of the company-specific risk be diversified away by investing in both Turning Point 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 Turning Point and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turning Point Brands and Greenlane Holdings, you can compare the effects of market volatilities on Turning Point 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 Turning Point with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and Greenlane Holdings.
Diversification Opportunities for Turning Point and Greenlane Holdings
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turning and Greenlane is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and Turning Point 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 Turning Point Brands 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 Turning Point i.e., Turning Point and Greenlane Holdings go up and down completely randomly.
Pair Corralation between Turning Point and Greenlane Holdings
Considering the 90-day investment horizon Turning Point Brands is expected to generate 0.45 times more return on investment than Greenlane Holdings. However, Turning Point Brands is 2.25 times less risky than Greenlane Holdings. It trades about 0.59 of its potential returns per unit of risk. Greenlane Holdings is currently generating about -0.58 per unit of risk. If you would invest 4,673 in Turning Point Brands on August 28, 2024 and sell it today you would earn a total of 1,557 from holding Turning Point Brands or generate 33.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turning Point Brands vs. Greenlane Holdings
Performance |
| Timeline |
| Turning Point Brands |
| Greenlane Holdings |
Turning Point and Greenlane Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and Greenlane Holdings
The main advantage of trading using opposite Turning Point and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point 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.| Turning Point vs. Imperial Brands PLC | Turning Point vs. Philip Morris International | Turning Point vs. Japan Tobacco ADR | Turning Point vs. Imperial Brands PLC |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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