Correlation Between General Cannabis and Rapid Nutrition

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

By analyzing existing cross correlation between General Cannabis Corp and Rapid Nutrition PLC, you can compare the effects of market volatilities on General Cannabis and Rapid Nutrition 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 General Cannabis with a short position of Rapid Nutrition. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Cannabis and Rapid Nutrition.

Diversification Opportunities for General Cannabis and Rapid Nutrition

0.0

Correlation Coefficient

General Cannabis  Rapid Nutrition

Pay attention - limited upside

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

Pair Corralation between General Cannabis and Rapid Nutrition

If you would invest  4.15  in General Cannabis Corp on September 15, 2025 and sell it today you would earn a total of  0.48  from holding General Cannabis Corp or generate 11.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

General Cannabis Corp  vs.  Rapid Nutrition PLC

General Cannabis Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in General Cannabis Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, General Cannabis displayed solid returns over the last few months and may actually be approaching a breakup point.

Rapid Nutrition PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Rapid Nutrition PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Rapid Nutrition is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with General Cannabis and Rapid Nutrition

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

The idea behind General Cannabis Corp and Rapid Nutrition PLC 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..