Correlation Between Charlies Holdings and Greenlane Holdings

Can any of the company-specific risk be diversified away by investing in both Charlies Holdings 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 Charlies Holdings and Greenlane Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Charlies Holdings and Greenlane Holdings, you can compare the effects of market volatilities on Charlies Holdings 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 Charlies Holdings with a short position of Greenlane Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charlies Holdings and Greenlane Holdings.

Diversification Opportunities for Charlies Holdings and Greenlane Holdings

0.0

Correlation Coefficient

Charlies Holdings  Greenlane Holdings

Pay attention - limited upside

The 3 months correlation between Charlies and Greenlane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Charlies Holdings and Greenlane Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlane Holdings and Charlies Holdings 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 Charlies Holdings 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 Charlies Holdings i.e., Charlies Holdings and Greenlane Holdings go up and down completely randomly.

Pair Corralation between Charlies Holdings and Greenlane Holdings

If you would invest (100.00) in Charlies Holdings on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Charlies Holdings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Charlies Holdings  vs.  Greenlane Holdings

Charlies Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Charlies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Charlies Holdings is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Greenlane Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greenlane Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Charlies Holdings and Greenlane Holdings

The main advantage of trading using opposite Charlies Holdings and Greenlane Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charlies Holdings 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.

The idea behind Charlies Holdings and Greenlane Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.