Correlation Between Gerdau SA and Cannabis Suisse
Can any of the company-specific risk be diversified away by investing in both Gerdau SA 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 Gerdau SA and Cannabis Suisse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gerdau SA ADR and Cannabis Suisse Corp, you can compare the effects of market volatilities on Gerdau SA 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 Gerdau SA with a short position of Cannabis Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gerdau SA and Cannabis Suisse.
Diversification Opportunities for Gerdau SA and Cannabis Suisse
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gerdau and Cannabis is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gerdau SA ADR 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 Gerdau SA 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 Gerdau SA ADR 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 Gerdau SA i.e., Gerdau SA and Cannabis Suisse go up and down completely randomly.
Pair Corralation between Gerdau SA and Cannabis Suisse
Considering the 90-day investment horizon Gerdau SA is expected to generate 5.04 times less return on investment than Cannabis Suisse. But when comparing it to its historical volatility, Gerdau SA ADR is 13.62 times less risky than Cannabis Suisse. It trades about 0.15 of its potential returns per unit of risk. Cannabis Suisse Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1.70 in Cannabis Suisse Corp on September 4, 2025 and sell it today you would lose (0.97) from holding Cannabis Suisse Corp or give up 57.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Gerdau SA ADR vs. Cannabis Suisse Corp
Performance |
| Timeline |
| Gerdau SA ADR |
| Cannabis Suisse Corp |
Gerdau SA and Cannabis Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gerdau SA and Cannabis Suisse
The main advantage of trading using opposite Gerdau SA and Cannabis Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gerdau SA 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.| Gerdau SA vs. NorthPoint Communications Group | Gerdau SA vs. Yuexiu Transport Infrastructure | Gerdau SA vs. Willis Lease Finance | Gerdau SA vs. Centaurus Metals Limited |
| Cannabis Suisse vs. Origin Investment Corp | Cannabis Suisse vs. Grounded People Apparel | Cannabis Suisse vs. Alternative Investment | Cannabis Suisse vs. China Outfitters Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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