Correlation Between Cannabis Suisse and Curaleaf Holdings

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

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

Diversification Opportunities for Cannabis Suisse and Curaleaf Holdings

0.17

Correlation Coefficient

Cannabis Suisse  Curaleaf Holdings

Average diversification

The 3 months correlation between Cannabis and Curaleaf is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Curaleaf Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curaleaf Holdings and Cannabis Suisse 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 Cannabis Suisse Corp are associated (or correlated) with Curaleaf Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curaleaf Holdings has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Curaleaf Holdings go up and down completely randomly.

Pair Corralation between Cannabis Suisse and Curaleaf Holdings

Given the investment horizon of 90 days Cannabis Suisse Corp is expected to generate 4.11 times more return on investment than Curaleaf Holdings. However, Cannabis Suisse is 4.11 times more volatile than Curaleaf Holdings. It trades about 0.12 of its potential returns per unit of risk. Curaleaf Holdings is currently generating about 0.28 per unit of risk. If you would invest  1.80  in Cannabis Suisse Corp on May 16, 2025 and sell it today you would lose (0.37) from holding Cannabis Suisse Corp or give up 20.56% of portfolio value over 90 days.

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

Cannabis Suisse Corp  vs.  Curaleaf Holdings

Cannabis Suisse Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cannabis Suisse Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Cannabis Suisse demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Curaleaf Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Curaleaf Holdings are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Curaleaf Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cannabis Suisse and Curaleaf Holdings

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

The idea behind Cannabis Suisse Corp and Curaleaf Holdings 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.