Correlation Between Greenlane Holdings and Vector

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

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

Diversification Opportunities for Greenlane Holdings and Vector

0.0

Correlation Coefficient

Greenlane Holdings  Vector

Pay attention - limited upside

The 3 months correlation between Greenlane and Vector is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Vector Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vector Group 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 Vector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vector Group has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Vector go up and down completely randomly.

Pair Corralation between Greenlane Holdings and Vector

If you would invest (100.00) in Vector Group on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Vector Group 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

Greenlane Holdings  vs.  Vector Group

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.

Vector Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vector Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Vector is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Greenlane Holdings and Vector

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

The idea behind Greenlane Holdings and Vector Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.