Correlation Between Greenlane Holdings and Jeffs Brands

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

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

Diversification Opportunities for Greenlane Holdings and Jeffs Brands

-0.74

Correlation Coefficient

Greenlane Holdings  Jeffs Brands

Pay attention - limited upside

The 3 months correlation between Greenlane and Jeffs is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands and Greenlane 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 Greenlane Holdings are associated (or correlated) with Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Jeffs Brands go up and down completely randomly.

Pair Corralation between Greenlane Holdings and Jeffs Brands

Given the investment horizon of 90 days Greenlane Holdings is expected to generate 4.05 times less return on investment than Jeffs Brands. But when comparing it to its historical volatility, Greenlane Holdings is 2.44 times less risky than Jeffs Brands. It trades about 0.06 of its potential returns per unit of risk. Jeffs Brands is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  29.00  in Jeffs Brands on September 21, 2024 and sell it today you would earn a total of  210.00  from holding Jeffs Brands or generate 724.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.07%
Values	Daily Returns

Greenlane Holdings  vs.  Jeffs Brands

Greenlane Holdings

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Jeffs Brands

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jeffs Brands are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Jeffs Brands reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Greenlane Holdings and Jeffs Brands

The main advantage of trading using opposite Greenlane Holdings and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlane Holdings position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.

The idea behind Greenlane Holdings and Jeffs Brands 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.