Correlation Between Medmen Enterprises and Bausch Health
Can any of the company-specific risk be diversified away by investing in both Medmen Enterprises and Bausch Health 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 Medmen Enterprises and Bausch Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medmen Enterprises Class and Bausch Health Companies, you can compare the effects of market volatilities on Medmen Enterprises and Bausch Health 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 Medmen Enterprises with a short position of Bausch Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medmen Enterprises and Bausch Health.
Diversification Opportunities for Medmen Enterprises and Bausch Health
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Medmen and Bausch is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Medmen Enterprises Class and Bausch Health Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bausch Health Companies and Medmen Enterprises 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 Medmen Enterprises Class are associated (or correlated) with Bausch Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bausch Health Companies has no effect on the direction of Medmen Enterprises i.e., Medmen Enterprises and Bausch Health go up and down completely randomly.
Pair Corralation between Medmen Enterprises and Bausch Health
If you would invest 0.01 in Medmen Enterprises Class on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Medmen Enterprises Class or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Medmen Enterprises Class vs. Bausch Health Companies
Performance |
| Timeline |
| Medmen Enterprises Class |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bausch Health Companies |
Medmen Enterprises and Bausch Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medmen Enterprises and Bausch Health
The main advantage of trading using opposite Medmen Enterprises and Bausch Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medmen Enterprises position performs unexpectedly, Bausch Health 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 Bausch Health will offset losses from the drop in Bausch Health's long position.| Medmen Enterprises vs. Curaleaf Holdings | Medmen Enterprises vs. Green Thumb Industries | Medmen Enterprises vs. Trulieve Cannabis Corp | Medmen Enterprises vs. Verano Holdings Corp |
| Bausch Health vs. Crinetics Pharmaceuticals | Bausch Health vs. Enanta Pharmaceuticals | Bausch Health vs. Amicus Therapeutics | Bausch Health vs. Connect Biopharma Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |