Correlation Between Sohm and Greater Cannabis

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

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

Diversification Opportunities for Sohm and Greater Cannabis

0.0

Correlation Coefficient

Sohm  Greater Cannabis

Pay attention - limited upside

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

Pair Corralation between Sohm and Greater Cannabis

If you would invest  0.03  in Greater Cannabis on May 16, 2025 and sell it today you would lose (0.01) from holding Greater Cannabis or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sohm Inc  vs.  Greater Cannabis

Sohm Inc

Risk-Adjusted Performance

Weakest

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

Greater Cannabis

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Greater Cannabis are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Greater Cannabis displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sohm and Greater Cannabis

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

The idea behind Sohm Inc and Greater Cannabis 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.