Correlation Between General Cannabis and Revive Therapeutics

Can any of the company-specific risk be diversified away by investing in both General Cannabis and Revive Therapeutics 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 Revive Therapeutics 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 Revive Therapeutics, you can compare the effects of market volatilities on General Cannabis and Revive Therapeutics 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 Revive Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Cannabis and Revive Therapeutics.

Diversification Opportunities for General Cannabis and Revive Therapeutics

-0.41

Correlation Coefficient

General Cannabis  Revive Therapeutics

Very good diversification

The 3 months correlation between General and Revive is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding General Cannabis Corp and Revive Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revive Therapeutics 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 Revive Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revive Therapeutics has no effect on the direction of General Cannabis i.e., General Cannabis and Revive Therapeutics go up and down completely randomly.

Pair Corralation between General Cannabis and Revive Therapeutics

Given the investment horizon of 90 days General Cannabis Corp is expected to generate 0.86 times more return on investment than Revive Therapeutics. However, General Cannabis Corp is 1.16 times less risky than Revive Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Revive Therapeutics is currently generating about -0.02 per unit of risk. If you would invest  3.58  in General Cannabis Corp on August 12, 2025 and sell it today you would earn a total of  0.47  from holding General Cannabis Corp or generate 13.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

General Cannabis Corp  vs.  Revive Therapeutics

General Cannabis Corp

Risk-Adjusted Performance

Fair

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.

Revive Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Revive Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with General Cannabis and Revive Therapeutics

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

The idea behind General Cannabis Corp and Revive Therapeutics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..