Correlation Between Trulieve Cannabis and Vext Science

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

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

Diversification Opportunities for Trulieve Cannabis and Vext Science

-0.3

Correlation Coefficient

Trulieve Cannabis  Vext Science

Very good diversification

The 3 months correlation between Trulieve and Vext is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Trulieve Cannabis Corp and Vext Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vext Science and Trulieve Cannabis 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 Trulieve Cannabis Corp are associated (or correlated) with Vext Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vext Science has no effect on the direction of Trulieve Cannabis i.e., Trulieve Cannabis and Vext Science go up and down completely randomly.

Pair Corralation between Trulieve Cannabis and Vext Science

Assuming the 90 days horizon Trulieve Cannabis Corp is expected to generate 0.61 times more return on investment than Vext Science. However, Trulieve Cannabis Corp is 1.63 times less risky than Vext Science. It trades about 0.04 of its potential returns per unit of risk. Vext Science is currently generating about -0.01 per unit of risk. If you would invest  419.00  in Trulieve Cannabis Corp on February 9, 2025 and sell it today you would earn a total of  17.00  from holding Trulieve Cannabis Corp or generate 4.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.73%
Values	Daily Returns

Trulieve Cannabis Corp  vs.  Vext Science

Trulieve Cannabis Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trulieve Cannabis Corp has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Vext Science

Risk-Adjusted Performance

Very Weak

Over the last 90 days Vext Science has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Trulieve Cannabis and Vext Science

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

The idea behind Trulieve Cannabis Corp and Vext Science 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.