Correlation Between FDG Electric and Merit Medical
Can any of the company-specific risk be diversified away by investing in both FDG Electric 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 FDG Electric and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FDG Electric Vehicles and Merit Medical Systems, you can compare the effects of market volatilities on FDG Electric 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 FDG Electric with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of FDG Electric and Merit Medical.
Diversification Opportunities for FDG Electric and Merit Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FDG and Merit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FDG Electric Vehicles 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 FDG Electric 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 FDG Electric Vehicles 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 FDG Electric i.e., FDG Electric and Merit Medical go up and down completely randomly.
Pair Corralation between FDG Electric and Merit Medical
If you would invest 9,490 in Merit Medical Systems on August 31, 2024 and sell it today you would earn a total of 876.00 from holding Merit Medical Systems or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FDG Electric Vehicles vs. Merit Medical Systems
Performance |
| Timeline |
| FDG Electric Vehicles |
| Merit Medical Systems |
FDG Electric and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FDG Electric and Merit Medical
The main advantage of trading using opposite FDG Electric and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FDG Electric 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.| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Quantumscape Corp | FDG Electric vs. Lear Corporation |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |