Correlation Between Elixinol Global and Cannabis Suisse

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

Diversification Opportunities for Elixinol Global and Cannabis Suisse

0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Elixinol and Cannabis is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Elixinol Global and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse Corp and Elixinol Global 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 Elixinol Global are associated (or correlated) with Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of Elixinol Global i.e., Elixinol Global and Cannabis Suisse go up and down completely randomly.

Pair Corralation between Elixinol Global and Cannabis Suisse

Assuming the 90 days horizon Elixinol Global is expected to generate 2.61 times more return on investment than Cannabis Suisse. However, Elixinol Global is 2.61 times more volatile than Cannabis Suisse Corp. It trades about 0.19 of its potential returns per unit of risk. Cannabis Suisse Corp is currently generating about 0.13 per unit of risk. If you would invest  1.52  in Elixinol Global on August 18, 2025 and sell it today you would lose (1.18) from holding Elixinol Global or give up 77.63% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.48%
ValuesDaily Returns

Elixinol Global  vs.  Cannabis Suisse Corp

 Performance 
       Timeline  
Elixinol Global 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Elixinol Global are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, Elixinol Global reported solid returns over the last few months and may actually be approaching a breakup point.
Cannabis Suisse Corp 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cannabis Suisse Corp are ranked lower than 9 (%) 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.

Elixinol Global and Cannabis Suisse Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Elixinol Global and Cannabis Suisse

The main advantage of trading using opposite Elixinol Global and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elixinol Global position performs unexpectedly, Cannabis Suisse 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 Cannabis Suisse will offset losses from the drop in Cannabis Suisse's long position.
The idea behind Elixinol Global and Cannabis Suisse Corp 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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