Correlation Between Zynerba Pharmaceuticals and General Cannabis
Can any of the company-specific risk be diversified away by investing in both Zynerba Pharmaceuticals 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 Zynerba Pharmaceuticals and General Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zynerba Pharmaceuticals and General Cannabis Corp, you can compare the effects of market volatilities on Zynerba Pharmaceuticals 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 Zynerba Pharmaceuticals with a short position of General Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zynerba Pharmaceuticals and General Cannabis.
Diversification Opportunities for Zynerba Pharmaceuticals and General Cannabis
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zynerba and General is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Zynerba Pharmaceuticals 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 Zynerba Pharmaceuticals 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 Zynerba Pharmaceuticals 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 Zynerba Pharmaceuticals i.e., Zynerba Pharmaceuticals and General Cannabis go up and down completely randomly.
Pair Corralation between Zynerba Pharmaceuticals and General Cannabis
Given the investment horizon of 90 days Zynerba Pharmaceuticals is expected to under-perform the General Cannabis. But the stock apears to be less risky and, when comparing its historical volatility, Zynerba Pharmaceuticals is 1.77 times less risky than General Cannabis. The stock trades about -0.05 of its potential returns per unit of risk. The General Cannabis Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 17.00 in General Cannabis Corp on August 29, 2024 and sell it today you would lose (13.48) from holding General Cannabis Corp or give up 79.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Zynerba Pharmaceuticals vs. General Cannabis Corp
Performance |
| Timeline |
| Zynerba Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| General Cannabis Corp |
Zynerba Pharmaceuticals and General Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zynerba Pharmaceuticals and General Cannabis
The main advantage of trading using opposite Zynerba Pharmaceuticals and General Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zynerba Pharmaceuticals 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.| Zynerba Pharmaceuticals vs. China SXT Pharmaceuticals | Zynerba Pharmaceuticals vs. Flora Growth Corp | Zynerba Pharmaceuticals vs. Clever Leaves Holdings | Zynerba Pharmaceuticals vs. Im Cannabis Corp |
| General Cannabis vs. Verano Holdings Corp | General Cannabis vs. 4Front Ventures Corp | General Cannabis vs. Ascend Wellness Holdings | General Cannabis vs. Medicine Man Technologies |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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