Correlation Between Revive Therapeutics and General Cannabis

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

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

Diversification Opportunities for Revive Therapeutics and General Cannabis

-0.42

Correlation Coefficient

Revive Therapeutics  General Cannabis

Very good diversification

The 3 months correlation between Revive and General is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Revive Therapeutics 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 Revive Therapeutics 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 Revive Therapeutics 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 Revive Therapeutics i.e., Revive Therapeutics and General Cannabis go up and down completely randomly.

Pair Corralation between Revive Therapeutics and General Cannabis

Assuming the 90 days horizon Revive Therapeutics is expected to generate 1.07 times more return on investment than General Cannabis. However, Revive Therapeutics is 1.07 times more volatile than General Cannabis Corp. It trades about -0.02 of its potential returns per unit of risk. General Cannabis Corp is currently generating about -0.11 per unit of risk. If you would invest  1.00  in Revive Therapeutics on August 10, 2025 and sell it today you would lose (0.10) from holding Revive Therapeutics or give up 10.0% of portfolio value over 90 days.

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

Revive Therapeutics  vs.  General Cannabis Corp

Revive Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Revive Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

General Cannabis Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in General Cannabis Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, General Cannabis displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Revive Therapeutics and General Cannabis

The main advantage of trading using opposite Revive Therapeutics and General Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Revive Therapeutics 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 Revive Therapeutics 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.