Correlation Between Cannlabs and CB Scientific

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

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

Diversification Opportunities for Cannlabs and CB Scientific

0.0

Correlation Coefficient

Cannlabs  CB Scientific

Pay attention - limited upside

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

Pair Corralation between Cannlabs and CB Scientific

If you would invest  3.90  in CB Scientific on May 9, 2025 and sell it today you would lose (0.10) from holding CB Scientific or give up 2.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Cannlabs  vs.  CB Scientific

Cannlabs

Risk-Adjusted Performance

Weakest

Over the last 90 days Cannlabs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cannlabs is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

CB Scientific

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CB Scientific are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, CB Scientific exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cannlabs and CB Scientific

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

The idea behind Cannlabs and CB Scientific 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.