Correlation Between INTER CARS and Merit Medical
Can any of the company-specific risk be diversified away by investing in both INTER CARS 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 INTER CARS and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and Merit Medical Systems, you can compare the effects of market volatilities on INTER CARS 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 INTER CARS with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Merit Medical.
Diversification Opportunities for INTER CARS and Merit Medical
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INTER and Merit is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA 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 INTER CARS 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 INTER CARS SA 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 INTER CARS i.e., INTER CARS and Merit Medical go up and down completely randomly.
Pair Corralation between INTER CARS and Merit Medical
Assuming the 90 days horizon INTER CARS SA is expected to generate 1.51 times more return on investment than Merit Medical. However, INTER CARS is 1.51 times more volatile than Merit Medical Systems. It trades about 0.2 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 11,980 in INTER CARS SA on October 29, 2024 and sell it today you would earn a total of 860.00 from holding INTER CARS SA or generate 7.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. Merit Medical Systems
Performance |
| Timeline |
| INTER CARS SA |
| Merit Medical Systems |
INTER CARS and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Merit Medical
The main advantage of trading using opposite INTER CARS and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS 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.| INTER CARS vs. Focus Home Interactive | INTER CARS vs. CITY OFFICE REIT | INTER CARS vs. DFS Furniture PLC | INTER CARS vs. 24SEVENOFFICE GROUP AB |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |