Correlation Between CannTrust Holdings and Orphazyme A/S

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Can any of the company-specific risk be diversified away by investing in both CannTrust Holdings and Orphazyme A/S 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 CannTrust Holdings and Orphazyme A/S into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CannTrust Holdings and Orphazyme AS, you can compare the effects of market volatilities on CannTrust Holdings and Orphazyme A/S 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 CannTrust Holdings with a short position of Orphazyme A/S. Check out your portfolio center. Please also check ongoing floating volatility patterns of CannTrust Holdings and Orphazyme A/S.

Diversification Opportunities for CannTrust Holdings and Orphazyme A/S

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between CannTrust Holdings and Orphazyme A/S

If you would invest  9,000  in Orphazyme AS on August 27, 2025 and sell it today you would earn a total of  0.00  from holding Orphazyme AS or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.88%
ValuesDaily Returns

CannTrust Holdings  vs.  Orphazyme AS

 Performance 
       Timeline  
CannTrust Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days CannTrust Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, CannTrust Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Orphazyme A/S 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Orphazyme AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Orphazyme A/S is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

CannTrust Holdings and Orphazyme A/S Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CannTrust Holdings and Orphazyme A/S

The main advantage of trading using opposite CannTrust Holdings and Orphazyme A/S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CannTrust Holdings position performs unexpectedly, Orphazyme A/S 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 Orphazyme A/S will offset losses from the drop in Orphazyme A/S's long position.
The idea behind CannTrust Holdings and Orphazyme AS 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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