Correlation Between Evolus and Cannabis Suisse

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

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

Diversification Opportunities for Evolus and Cannabis Suisse

-0.03

Correlation Coefficient

Evolus  Cannabis Suisse

Good diversification

The 3 months correlation between Evolus and Cannabis is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and Cannabis Suisse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannabis Suisse Corp and Evolus 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 Evolus Inc are associated (or correlated) with Cannabis Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannabis Suisse Corp has no effect on the direction of Evolus i.e., Evolus and Cannabis Suisse go up and down completely randomly.

Pair Corralation between Evolus and Cannabis Suisse

Given the investment horizon of 90 days Evolus Inc is expected to under-perform the Cannabis Suisse. But the stock apears to be less risky and, when comparing its historical volatility, Evolus Inc is 19.01 times less risky than Cannabis Suisse. The stock trades about -0.04 of its potential returns per unit of risk. The Cannabis Suisse Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2.50  in Cannabis Suisse Corp on September 3, 2024 and sell it today you would lose (0.60) from holding Cannabis Suisse Corp or give up 24.0% of portfolio value over 90 days.

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

Evolus Inc  vs.  Cannabis Suisse Corp

Evolus Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evolus Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Cannabis Suisse Corp

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with Evolus and Cannabis Suisse

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

The idea behind Evolus Inc and Cannabis Suisse 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.