Correlation Between Cannabis Suisse and Genix Pharmaceuticals

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

Diversification Opportunities for Cannabis Suisse and Genix Pharmaceuticals

-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Cannabis and Genix is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Genix Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genix Pharmaceuticals and Cannabis Suisse 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 Cannabis Suisse Corp are associated (or correlated) with Genix Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genix Pharmaceuticals has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Genix Pharmaceuticals go up and down completely randomly.

Pair Corralation between Cannabis Suisse and Genix Pharmaceuticals

Given the investment horizon of 90 days Cannabis Suisse Corp is expected to generate 9.4 times more return on investment than Genix Pharmaceuticals. However, Cannabis Suisse is 9.4 times more volatile than Genix Pharmaceuticals. It trades about 0.14 of its potential returns per unit of risk. Genix Pharmaceuticals is currently generating about 0.12 per unit of risk. If you would invest  1.00  in Cannabis Suisse Corp on August 3, 2025 and sell it today you would earn a total of  0.02  from holding Cannabis Suisse Corp or generate 2.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Cannabis Suisse Corp  vs.  Genix Pharmaceuticals

 Performance 
       Timeline  
Cannabis Suisse Corp 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cannabis Suisse Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Cannabis Suisse demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Genix Pharmaceuticals 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Genix Pharmaceuticals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Genix Pharmaceuticals reported solid returns over the last few months and may actually be approaching a breakup point.

Cannabis Suisse and Genix Pharmaceuticals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cannabis Suisse and Genix Pharmaceuticals

The main advantage of trading using opposite Cannabis Suisse and Genix Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Suisse position performs unexpectedly, Genix Pharmaceuticals 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 Genix Pharmaceuticals will offset losses from the drop in Genix Pharmaceuticals' long position.
The idea behind Cannabis Suisse Corp and Genix Pharmaceuticals 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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