Correlation Between Cannabis Suisse and Nu Med

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

Diversification Opportunities for Cannabis Suisse and Nu Med

-0.19

Correlation Coefficient

Cannabis Suisse  Nu Med

Good diversification

The 3 months correlation between Cannabis and NUMD is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Nu Med Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nu Med Plus 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 Nu Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nu Med Plus has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Nu Med go up and down completely randomly.

Pair Corralation between Cannabis Suisse and Nu Med

Given the investment horizon of 90 days Cannabis Suisse Corp is expected to generate 4.95 times more return on investment than Nu Med. However, Cannabis Suisse is 4.95 times more volatile than Nu Med Plus. It trades about 0.16 of its potential returns per unit of risk. Nu Med Plus is currently generating about 0.05 per unit of risk. If you would invest  0.75  in Cannabis Suisse Corp on May 7, 2025 and sell it today you would earn a total of  0.25  from holding Cannabis Suisse Corp or generate 33.33% return on investment over 90 days.

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

Cannabis Suisse Corp  vs.  Nu Med Plus

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 12 (%) 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.

Nu Med Plus

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Med Plus are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady primary indicators, Nu Med exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cannabis Suisse and Nu Med

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

The idea behind Cannabis Suisse Corp and Nu Med Plus 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..