Correlation Between Green Thumb and Planet 13

Can any of the company-specific risk be diversified away by investing in both Green Thumb and Planet 13 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 Green Thumb and Planet 13 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Green Thumb Industries and Planet 13 Holdings, you can compare the effects of market volatilities on Green Thumb and Planet 13 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 Green Thumb with a short position of Planet 13. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Thumb and Planet 13.

Diversification Opportunities for Green Thumb and Planet 13

0.05

Correlation Coefficient

Green Thumb  Planet 13

Significant diversification

The 3 months correlation between Green and Planet is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Green Thumb Industries and Planet 13 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet 13 Holdings and Green Thumb 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 Green Thumb Industries are associated (or correlated) with Planet 13. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet 13 Holdings has no effect on the direction of Green Thumb i.e., Green Thumb and Planet 13 go up and down completely randomly.

Pair Corralation between Green Thumb and Planet 13

If you would invest  976.00  in Green Thumb Industries on September 3, 2024 and sell it today you would lose (47.00) from holding Green Thumb Industries or give up 4.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Green Thumb Industries  vs.  Planet 13 Holdings

Green Thumb Industries

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Green Thumb Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Green Thumb is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Planet 13 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Planet 13 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Planet 13 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Green Thumb and Planet 13

The main advantage of trading using opposite Green Thumb and Planet 13 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Thumb position performs unexpectedly, Planet 13 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 Planet 13 will offset losses from the drop in Planet 13's long position.

The idea behind Green Thumb Industries and Planet 13 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.