Correlation Between Green Thumb and Trulieve Cannabis

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

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

Diversification Opportunities for Green Thumb and Trulieve Cannabis

0.86

Correlation Coefficient

Green Thumb  Trulieve Cannabis

Very poor diversification

The 3 months correlation between Green and Trulieve is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Green Thumb Industries and Trulieve Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trulieve Cannabis Corp and Green Thumb 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 Green Thumb Industries are associated (or correlated) with Trulieve Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trulieve Cannabis Corp has no effect on the direction of Green Thumb i.e., Green Thumb and Trulieve Cannabis go up and down completely randomly.

Pair Corralation between Green Thumb and Trulieve Cannabis

Assuming the 90 days horizon Green Thumb Industries is expected to generate 0.88 times more return on investment than Trulieve Cannabis. However, Green Thumb Industries is 1.13 times less risky than Trulieve Cannabis. It trades about 0.04 of its potential returns per unit of risk. Trulieve Cannabis Corp is currently generating about 0.02 per unit of risk. If you would invest  642.00  in Green Thumb Industries on May 5, 2025 and sell it today you would earn a total of  33.00  from holding Green Thumb Industries or generate 5.14% return on investment over 90 days.

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

Green Thumb Industries  vs.  Trulieve Cannabis Corp

Green Thumb Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Green Thumb Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile forward indicators, Green Thumb may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Trulieve Cannabis Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Trulieve Cannabis Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Trulieve Cannabis is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Green Thumb and Trulieve Cannabis

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

The idea behind Green Thumb Industries and Trulieve Cannabis Corp 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.