Correlation Between 908 Devices and Merit Medical
Can any of the company-specific risk be diversified away by investing in both 908 Devices 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 908 Devices and Merit Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 908 Devices and Merit Medical Systems, you can compare the effects of market volatilities on 908 Devices 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 908 Devices with a short position of Merit Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of 908 Devices and Merit Medical.
Diversification Opportunities for 908 Devices and Merit Medical
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 908 and Merit is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding 908 Devices 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 908 Devices 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 908 Devices 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 908 Devices i.e., 908 Devices and Merit Medical go up and down completely randomly.
Pair Corralation between 908 Devices and Merit Medical
Given the investment horizon of 90 days 908 Devices is expected to under-perform the Merit Medical. In addition to that, 908 Devices is 5.33 times more volatile than Merit Medical Systems. It trades about -0.11 of its total potential returns per unit of risk. Merit Medical Systems is currently generating about 0.3 per unit of volatility. If you would invest 9,600 in Merit Medical Systems on August 26, 2024 and sell it today you would earn a total of 933.00 from holding Merit Medical Systems or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
908 Devices vs. Merit Medical Systems
Performance |
| Timeline |
| 908 Devices |
| Merit Medical Systems |
908 Devices and Merit Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 908 Devices and Merit Medical
The main advantage of trading using opposite 908 Devices and Merit Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 908 Devices 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.| 908 Devices vs. Heartbeam | 908 Devices vs. EUDA Health Holdings | 908 Devices vs. Nutex Health | 908 Devices vs. Healthcare Triangle |
| Merit Medical vs. Heartbeam | Merit Medical vs. EUDA Health Holdings | Merit Medical vs. Nutex Health | Merit Medical vs. Healthcare Triangle |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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