Correlation Between Greenlane Holdings and Kaival Brands

Can any of the company-specific risk be diversified away by investing in both Greenlane Holdings and Kaival 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 Kaival 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 Kaival Brands Innovations, you can compare the effects of market volatilities on Greenlane Holdings and Kaival 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 Kaival Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlane Holdings and Kaival Brands.

Diversification Opportunities for Greenlane Holdings and Kaival Brands

-0.06

Correlation Coefficient

Greenlane Holdings  Kaival Brands

Good diversification

The 3 months correlation between Greenlane and Kaival is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Greenlane Holdings and Kaival Brands Innovations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaival Brands Innovations 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 Kaival Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaival Brands Innovations has no effect on the direction of Greenlane Holdings i.e., Greenlane Holdings and Kaival Brands go up and down completely randomly.

Pair Corralation between Greenlane Holdings and Kaival Brands

Given the investment horizon of 90 days Greenlane Holdings is expected to generate 3.57 times more return on investment than Kaival Brands. However, Greenlane Holdings is 3.57 times more volatile than Kaival Brands Innovations. It trades about 0.05 of its potential returns per unit of risk. Kaival Brands Innovations is currently generating about -0.02 per unit of risk. If you would invest  563.00  in Greenlane Holdings on May 7, 2025 and sell it today you would lose (179.00) from holding Greenlane Holdings or give up 31.79% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Greenlane Holdings  vs.  Kaival Brands Innovations

Greenlane Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Greenlane Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting essential indicators, Greenlane Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Kaival Brands Innovations

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kaival Brands Innovations has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Greenlane Holdings and Kaival Brands

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

The idea behind Greenlane Holdings and Kaival Brands Innovations 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.