Correlation Between NanoTech Entertainment and General Cannabis

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

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

Diversification Opportunities for NanoTech Entertainment and General Cannabis

0.0

Correlation Coefficient

NanoTech Entertainment  General Cannabis

Pay attention - limited upside

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

Pair Corralation between NanoTech Entertainment and General Cannabis

If you would invest  0.01  in NanoTech Entertainment on September 7, 2025 and sell it today you would earn a total of  0.00  from holding NanoTech Entertainment or generate 0.0% return on investment over 90 days.

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

NanoTech Entertainment  vs.  General Cannabis Corp

NanoTech Entertainment

Risk-Adjusted Performance

Weakest

Over the last 90 days NanoTech Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, NanoTech Entertainment is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

General Cannabis Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days General Cannabis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, General Cannabis is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with NanoTech Entertainment and General Cannabis

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

The idea behind NanoTech Entertainment and General 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.