Correlation Between Medicine Man and Columbia Care
Can any of the company-specific risk be diversified away by investing in both Medicine Man and Columbia Care 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 Medicine Man and Columbia Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medicine Man Technologies and Columbia Care, you can compare the effects of market volatilities on Medicine Man and Columbia Care 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 Medicine Man with a short position of Columbia Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medicine Man and Columbia Care.
Diversification Opportunities for Medicine Man and Columbia Care
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Medicine and Columbia is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Medicine Man Technologies and Columbia Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Care and Medicine Man 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 Medicine Man Technologies are associated (or correlated) with Columbia Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Care has no effect on the direction of Medicine Man i.e., Medicine Man and Columbia Care go up and down completely randomly.
Pair Corralation between Medicine Man and Columbia Care
Given the investment horizon of 90 days Medicine Man Technologies is expected to generate 2.84 times more return on investment than Columbia Care. However, Medicine Man is 2.84 times more volatile than Columbia Care. It trades about 0.04 of its potential returns per unit of risk. Columbia Care is currently generating about -0.11 per unit of risk. If you would invest 180.00 in Medicine Man Technologies on August 24, 2024 and sell it today you would lose (169.00) from holding Medicine Man Technologies or give up 93.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 32.38% |
| Values | Daily Returns |
Medicine Man Technologies vs. Columbia Care
Performance |
| Timeline |
| Medicine Man Technologies |
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Medicine Man and Columbia Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medicine Man and Columbia Care
The main advantage of trading using opposite Medicine Man and Columbia Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medicine Man position performs unexpectedly, Columbia Care 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 Columbia Care will offset losses from the drop in Columbia Care's long position.| Medicine Man vs. Green Cures Botanical | Medicine Man vs. Rimrock Gold Corp | Medicine Man vs. Galexxy Holdings | Medicine Man vs. Indoor Harvest Corp |
| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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