Correlation Between First Merchants and 251566AA3
Specify exactly 2 symbols:
By analyzing existing cross correlation between First Merchants and DT 3625 21 JAN 50, you can compare the effects of market volatilities on First Merchants and 251566AA3 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 First Merchants with a short position of 251566AA3. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Merchants and 251566AA3.
Diversification Opportunities for First Merchants and 251566AA3
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and 251566AA3 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding First Merchants and DT 3625 21 JAN 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DT 3625 21 and First Merchants 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 First Merchants are associated (or correlated) with 251566AA3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DT 3625 21 has no effect on the direction of First Merchants i.e., First Merchants and 251566AA3 go up and down completely randomly.
Pair Corralation between First Merchants and 251566AA3
Given the investment horizon of 90 days First Merchants is expected to under-perform the 251566AA3. But the stock apears to be less risky and, when comparing its historical volatility, First Merchants is 2.22 times less risky than 251566AA3. The stock trades about -0.2 of its potential returns per unit of risk. The DT 3625 21 JAN 50 is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 7,590 in DT 3625 21 JAN 50 on October 1, 2024 and sell it today you would earn a total of 778.00 from holding DT 3625 21 JAN 50 or generate 10.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
First Merchants vs. DT 3625 21 JAN 50
Performance |
| Timeline |
| First Merchants |
| DT 3625 21 |
First Merchants and 251566AA3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Merchants and 251566AA3
The main advantage of trading using opposite First Merchants and 251566AA3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Merchants position performs unexpectedly, 251566AA3 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 251566AA3 will offset losses from the drop in 251566AA3's long position.| First Merchants vs. Home Bancorp | First Merchants vs. HomeTrust Bancshares | First Merchants vs. Great Southern Bancorp | First Merchants vs. Finward Bancorp |
| 251566AA3 vs. AEP TEX INC | 251566AA3 vs. US BANK NATIONAL | 251566AA3 vs. Republic Bancorp | 251566AA3 vs. BYD Co Ltd |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |