Correlation Between Medical Cannabis and Omnicell

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

By analyzing existing cross correlation between Medical Cannabis Pay and Omnicell, you can compare the effects of market volatilities on Medical Cannabis and Omnicell 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 Medical Cannabis with a short position of Omnicell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Cannabis and Omnicell.

Diversification Opportunities for Medical Cannabis and Omnicell

0.0

Correlation Coefficient

Medical Cannabis  Omnicell

Pay attention - limited upside

The 3 months correlation between Medical and Omnicell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Medical Cannabis Pay and Omnicell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicell and Medical Cannabis 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 Medical Cannabis Pay are associated (or correlated) with Omnicell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicell has no effect on the direction of Medical Cannabis i.e., Medical Cannabis and Omnicell go up and down completely randomly.

Pair Corralation between Medical Cannabis and Omnicell

If you would invest  2,566  in Omnicell on May 6, 2025 and sell it today you would earn a total of  465.00  from holding Omnicell or generate 18.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Medical Cannabis Pay  vs.  Omnicell

Medical Cannabis Pay

Risk-Adjusted Performance

Very Weak

Over the last 90 days Medical Cannabis Pay has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Medical Cannabis is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Omnicell

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Omnicell are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Omnicell disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Medical Cannabis and Omnicell

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

The idea behind Medical Cannabis Pay and Omnicell 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.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.