Correlation Between CB Scientific and Canna Consumer

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

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

Diversification Opportunities for CB Scientific and Canna Consumer

0.0

Correlation Coefficient

CB Scientific  Canna Consumer

Pay attention - limited upside

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

Pair Corralation between CB Scientific and Canna Consumer

If you would invest  2.16  in Canna Consumer Goods on May 11, 2025 and sell it today you would earn a total of  3.34  from holding Canna Consumer Goods or generate 154.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CB Scientific  vs.  Canna Consumer Goods

CB Scientific

Risk-Adjusted Performance

Soft

Over the last 90 days CB Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CB Scientific is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Canna Consumer Goods

Risk-Adjusted Performance

Good

Over the last 90 days Canna Consumer Goods has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak primary indicators, Canna Consumer revealed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CB Scientific and Canna Consumer

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

The idea behind CB Scientific and Canna Consumer Goods 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.