Correlation Between Nextleaf Solutions and Green Growth

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

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

Diversification Opportunities for Nextleaf Solutions and Green Growth

0.0

Correlation Coefficient

Nextleaf Solutions  Green Growth

Pay attention - limited upside

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

Pair Corralation between Nextleaf Solutions and Green Growth

If you would invest  5.11  in Nextleaf Solutions on October 23, 2024 and sell it today you would lose (0.21) from holding Nextleaf Solutions or give up 4.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Nextleaf Solutions  vs.  Green Growth Brands

Nextleaf Solutions

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nextleaf Solutions are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Nextleaf Solutions may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Green Growth Brands

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nextleaf Solutions and Green Growth

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

The idea behind Nextleaf Solutions and Green Growth 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.