Correlation Between Agilent Technologies and Merit Medical
Can any of the company-specific risk be diversified away by investing in both Agilent Technologies 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 Agilent Technologies and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agilent Technologies and Merit Medical Systems, you can compare the effects of market volatilities on Agilent Technologies 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 Agilent Technologies with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agilent Technologies and Merit Medical.
Diversification Opportunities for Agilent Technologies and Merit Medical
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Agilent and Merit is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies 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 Agilent Technologies i.e., Agilent Technologies and Merit Medical go up and down completely randomly.
Pair Corralation between Agilent Technologies and Merit Medical
Taking into account the 90-day investment horizon Agilent Technologies is expected to generate 1.45 times less return on investment than Merit Medical. In addition to that, Agilent Technologies is 1.36 times more volatile than Merit Medical Systems. It trades about 0.12 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.24 per unit of volatility. If you would invest 9,590 in Merit Medical Systems on August 30, 2024 and sell it today you would earn a total of 776.00 from holding Merit Medical Systems or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agilent Technologies vs. Merit Medical Systems
Performance |
| Timeline |
| Agilent Technologies |
| Merit Medical Systems |
Agilent Technologies and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agilent Technologies and Merit Medical
The main advantage of trading using opposite Agilent Technologies and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agilent Technologies 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.| Agilent Technologies vs. Danaher | Agilent Technologies vs. Illumina | Agilent Technologies vs. IDEXX Laboratories | Agilent Technologies vs. Waters |
| Merit Medical vs. ReShape Lifesciences | Merit Medical vs. Bone Biologics Corp | Merit Medical vs. Tivic Health Systems | Merit Medical vs. Nuwellis |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |