Correlation Between GRUPO CARSO and Merit Medical
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO and Merit Medical 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 GRUPO CARSO and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPO CARSO A1 and Merit Medical Systems, you can compare the effects of market volatilities on GRUPO CARSO and Merit Medical 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 GRUPO CARSO with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO and Merit Medical.
Diversification Opportunities for GRUPO CARSO and Merit Medical
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRUPO and Merit is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and Merit Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merit Medical Systems and GRUPO CARSO 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 GRUPO CARSO A1 are associated (or correlated) with Merit Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merit Medical Systems has no effect on the direction of GRUPO CARSO i.e., GRUPO CARSO and Merit Medical go up and down completely randomly.
Pair Corralation between GRUPO CARSO and Merit Medical
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 1.39 times more return on investment than Merit Medical. However, GRUPO CARSO is 1.39 times more volatile than Merit Medical Systems. It trades about 0.29 of its potential returns per unit of risk. Merit Medical Systems is currently generating about 0.27 per unit of risk. If you would invest 515.00 in GRUPO CARSO A1 on October 29, 2024 and sell it today you would earn a total of 50.00 from holding GRUPO CARSO A1 or generate 9.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. Merit Medical Systems
Performance |
| Timeline |
| GRUPO CARSO A1 |
| Merit Medical Systems |
GRUPO CARSO and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO and Merit Medical
The main advantage of trading using opposite GRUPO CARSO and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO position performs unexpectedly, Merit Medical 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 Merit Medical will offset losses from the drop in Merit Medical's long position.| GRUPO CARSO vs. Motorcar Parts of | GRUPO CARSO vs. Citic Telecom International | GRUPO CARSO vs. Grupo Carso SAB | GRUPO CARSO vs. China Communications Services |
| Merit Medical vs. Apple Inc | Merit Medical vs. Apple Inc | Merit Medical vs. Apple Inc | Merit Medical vs. Apple Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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