Correlation Between Medmen Enterprises and Sohm
Can any of the company-specific risk be diversified away by investing in both Medmen Enterprises and Sohm 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 Sohm 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 Sohm Inc, you can compare the effects of market volatilities on Medmen Enterprises and Sohm 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 Sohm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medmen Enterprises and Sohm.
Diversification Opportunities for Medmen Enterprises and Sohm
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medmen and Sohm is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Medmen Enterprises Class and Sohm Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sohm Inc 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 Sohm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sohm Inc has no effect on the direction of Medmen Enterprises i.e., Medmen Enterprises and Sohm go up and down completely randomly.
Pair Corralation between Medmen Enterprises and Sohm
If you would invest 0.08 in Sohm Inc on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Sohm Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medmen Enterprises Class vs. Sohm Inc
Performance |
| Timeline |
| Medmen Enterprises Class |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sohm Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Medmen Enterprises and Sohm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medmen Enterprises and Sohm
The main advantage of trading using opposite Medmen Enterprises and Sohm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medmen Enterprises position performs unexpectedly, Sohm 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 Sohm will offset losses from the drop in Sohm'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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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