Correlation Between TILT Holdings and Glass House

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

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

Diversification Opportunities for TILT Holdings and Glass House

0.33

Correlation Coefficient

TILT Holdings  Glass House

Weak diversification

The 3 months correlation between TILT and Glass is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TILT Holdings and Glass House Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glass House Brands and TILT 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 TILT Holdings are associated (or correlated) with Glass House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glass House Brands has no effect on the direction of TILT Holdings i.e., TILT Holdings and Glass House go up and down completely randomly.

Pair Corralation between TILT Holdings and Glass House

Assuming the 90 days horizon TILT Holdings is expected to generate 1.81 times more return on investment than Glass House. However, TILT Holdings is 1.81 times more volatile than Glass House Brands. It trades about 0.11 of its potential returns per unit of risk. Glass House Brands is currently generating about 0.08 per unit of risk. If you would invest  0.56  in TILT Holdings on May 19, 2025 and sell it today you would earn a total of  0.27  from holding TILT Holdings or generate 48.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

TILT Holdings  vs.  Glass House Brands

TILT Holdings

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TILT Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TILT Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Glass House Brands

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Glass House Brands are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Glass House reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TILT Holdings and Glass House

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

The idea behind TILT Holdings and Glass House 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.