Post by
Marcel7 on Nov 18, 2015 10:52am
Tail Wind
This is what happens to CXR when VRX has a good day. As much as it annoys we, CXR price still appears to be correlated to VRX. When VRX has a bad day it acts as a drag, CXR may go down but not as badly as VRX, but when VRX has an up day, it pushes CXR.
Eventually I think we will see this correlation break as CXR delivers consolidated financials, but for the time being it is a good bet that if VRX is up, CXR will be up more. If VRX is down, CXR may be flat or down slightly, but less than VRX.
I love that notwrong disappears when the stock is rallying nicely, only to reappear when the price increases stabilize or it pulls back a little from the high.
Comment by
visionaryfool on Nov 18, 2015 11:10am
Agreed. I think that's why its important to still post relevant items about Valeant on this board given the strong correlation. I like that when Valeant falls, CXR falls less than it and when Valeant rises, CXR rises more than it. That's a sign of decoupling :D