Correlation Between US Global and Merit Medical
Can any of the company-specific risk be diversified away by investing in both US Global 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 US Global and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Global Investors and Merit Medical Systems, you can compare the effects of market volatilities on US Global 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 US Global with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Global and Merit Medical.
Diversification Opportunities for US Global and Merit Medical
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GROW and Merit is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and Merit Medical go up and down completely randomly.
Pair Corralation between US Global and Merit Medical
Given the investment horizon of 90 days US Global is expected to generate 21.13 times less return on investment than Merit Medical. In addition to that, US Global is 1.31 times more volatile than Merit Medical Systems. It trades about 0.01 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.21 per unit of volatility. If you would invest 9,866 in Merit Medical Systems on September 1, 2024 and sell it today you would earn a total of 524.00 from holding Merit Medical Systems or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Global Investors vs. Merit Medical Systems
Performance |
| Timeline |
| US Global Investors |
| Merit Medical Systems |
US Global and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Global and Merit Medical
The main advantage of trading using opposite US Global and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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.| US Global vs. Visa Class A | US Global vs. Diamond Hill Investment | US Global vs. Distoken Acquisition | US Global vs. Associated Capital Group |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |