Correlation Between AngioDynamics and Merit Medical
Can any of the company-specific risk be diversified away by investing in both AngioDynamics 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 AngioDynamics and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AngioDynamics and Merit Medical Systems, you can compare the effects of market volatilities on AngioDynamics 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 AngioDynamics with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of AngioDynamics and Merit Medical.
Diversification Opportunities for AngioDynamics and Merit Medical
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AngioDynamics and Merit is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics 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 AngioDynamics 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 AngioDynamics 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 AngioDynamics i.e., AngioDynamics and Merit Medical go up and down completely randomly.
Pair Corralation between AngioDynamics and Merit Medical
Given the investment horizon of 90 days AngioDynamics is expected to under-perform the Merit Medical. In addition to that, AngioDynamics is 2.11 times more volatile than Merit Medical Systems. It trades about -0.02 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.06 per unit of volatility. If you would invest 7,111 in Merit Medical Systems on August 24, 2024 and sell it today you would earn a total of 3,364 from holding Merit Medical Systems or generate 47.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AngioDynamics vs. Merit Medical Systems
Performance |
| Timeline |
| AngioDynamics |
| Merit Medical Systems |
AngioDynamics and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AngioDynamics and Merit Medical
The main advantage of trading using opposite AngioDynamics and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngioDynamics 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.| AngioDynamics vs. AptarGroup | AngioDynamics vs. Repro Med Systems | AngioDynamics vs. AtriCure | AngioDynamics vs. Akoya Biosciences |
| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
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 CEOs Directory module to screen CEOs from public companies around the world.
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