Correlation Between China Clean and Merit Medical
Can any of the company-specific risk be diversified away by investing in both China Clean 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 China Clean and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Clean Energy and Merit Medical Systems, you can compare the effects of market volatilities on China Clean 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 China Clean with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Clean and Merit Medical.
Diversification Opportunities for China Clean and Merit Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Merit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Clean Energy 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 China Clean 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 China Clean Energy 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 China Clean i.e., China Clean and Merit Medical go up and down completely randomly.
Pair Corralation between China Clean and Merit Medical
If you would invest 6,977 in Merit Medical Systems on September 4, 2024 and sell it today you would earn a total of 3,506 from holding Merit Medical Systems or generate 50.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Clean Energy vs. Merit Medical Systems
Performance |
| Timeline |
| China Clean Energy |
| Merit Medical Systems |
China Clean and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Clean and Merit Medical
The main advantage of trading using opposite China Clean and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Clean 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.| China Clean vs. Meiwu Technology Co | China Clean vs. The Gap, | China Clean vs. Transocean | China Clean vs. Precision Drilling |
| Merit Medical vs. Baxter International | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ResMed Inc | Merit Medical vs. The Cooper Companies, |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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