Correlation Between MERCK Kommanditgesells and Marimed
Can any of the company-specific risk be diversified away by investing in both MERCK Kommanditgesells and Marimed 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 MERCK Kommanditgesells and Marimed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MERCK Kommanditgesellschaft auf and Marimed, you can compare the effects of market volatilities on MERCK Kommanditgesells and Marimed 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 MERCK Kommanditgesells with a short position of Marimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of MERCK Kommanditgesells and Marimed.
Diversification Opportunities for MERCK Kommanditgesells and Marimed
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MERCK and Marimed is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MERCK Kommanditgesellschaft au and Marimed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marimed and MERCK Kommanditgesells 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 MERCK Kommanditgesellschaft auf are associated (or correlated) with Marimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marimed has no effect on the direction of MERCK Kommanditgesells i.e., MERCK Kommanditgesells and Marimed go up and down completely randomly.
Pair Corralation between MERCK Kommanditgesells and Marimed
Assuming the 90 days horizon MERCK Kommanditgesellschaft auf is expected to generate 0.47 times more return on investment than Marimed. However, MERCK Kommanditgesellschaft auf is 2.12 times less risky than Marimed. It trades about 0.1 of its potential returns per unit of risk. Marimed is currently generating about -0.05 per unit of risk. If you would invest 14,625 in MERCK Kommanditgesellschaft auf on November 3, 2024 and sell it today you would earn a total of 700.00 from holding MERCK Kommanditgesellschaft auf or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MERCK Kommanditgesellschaft au vs. Marimed
Performance |
| Timeline |
| MERCK Kommanditgesells |
| Marimed |
MERCK Kommanditgesells and Marimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MERCK Kommanditgesells and Marimed
The main advantage of trading using opposite MERCK Kommanditgesells and Marimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MERCK Kommanditgesells position performs unexpectedly, Marimed 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 Marimed will offset losses from the drop in Marimed's long position.| MERCK Kommanditgesells vs. Delta 9 Cannabis | MERCK Kommanditgesells vs. Body and Mind | MERCK Kommanditgesells vs. CLS Holdings USA | MERCK Kommanditgesells vs. Halo Collective |
| Marimed vs. Verano Holdings Corp | Marimed vs. Cresco Labs | Marimed vs. AYR Strategies Class | Marimed vs. Green Thumb Industries |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |