Correlation Between Cardiol Therapeutics and Cronos

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

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

Diversification Opportunities for Cardiol Therapeutics and Cronos

-0.81

Correlation Coefficient

Cardiol Therapeutics  Cronos

Pay attention - limited upside

The 3 months correlation between Cardiol and Cronos is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cardiol Therapeutics Class and Cronos Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos Group and Cardiol 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 Cardiol Therapeutics Class are associated (or correlated) with Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos Group has no effect on the direction of Cardiol Therapeutics i.e., Cardiol Therapeutics and Cronos go up and down completely randomly.

Pair Corralation between Cardiol Therapeutics and Cronos

Assuming the 90 days trading horizon Cardiol Therapeutics Class is expected to under-perform the Cronos. In addition to that, Cardiol Therapeutics is 1.35 times more volatile than Cronos Group. It trades about -0.02 of its total potential returns per unit of risk. Cronos Group is currently generating about 0.09 per unit of volatility. If you would invest  209.00  in Cronos Group on July 19, 2025 and sell it today you would earn a total of  39.00  from holding Cronos Group or generate 18.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.83%
Values	Daily Returns

Cardiol Therapeutics Class  vs.  Cronos Group

Cardiol Therapeutics

Risk-Adjusted Performance

Weakest

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

Cronos Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Cronos Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Cronos displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cardiol Therapeutics and Cronos

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

The idea behind Cardiol Therapeutics Class and Cronos Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.