Correlation Between Meridianlink and Global Business
Can any of the company-specific risk be diversified away by investing in both Meridianlink and Global Business 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 Meridianlink and Global Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridianlink and Global Business Travel, you can compare the effects of market volatilities on Meridianlink and Global Business 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 Meridianlink with a short position of Global Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridianlink and Global Business.
Diversification Opportunities for Meridianlink and Global Business
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meridianlink and Global is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Meridianlink and Global Business Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Business Travel and Meridianlink 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 Meridianlink are associated (or correlated) with Global Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Business Travel has no effect on the direction of Meridianlink i.e., Meridianlink and Global Business go up and down completely randomly.
Pair Corralation between Meridianlink and Global Business
Given the investment horizon of 90 days Meridianlink is expected to under-perform the Global Business. In addition to that, Meridianlink is 1.28 times more volatile than Global Business Travel. It trades about -0.28 of its total potential returns per unit of risk. Global Business Travel is currently generating about -0.13 per unit of volatility. If you would invest 945.00 in Global Business Travel on November 4, 2024 and sell it today you would lose (63.00) from holding Global Business Travel or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meridianlink vs. Global Business Travel
Performance |
| Timeline |
| Meridianlink |
| Global Business Travel |
Meridianlink and Global Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridianlink and Global Business
The main advantage of trading using opposite Meridianlink and Global Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridianlink position performs unexpectedly, Global Business 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 Global Business will offset losses from the drop in Global Business' long position.| Meridianlink vs. CoreCard Corp | Meridianlink vs. PROS Holdings | Meridianlink vs. Enfusion | Meridianlink vs. Paylocity Holdng |
| Global Business vs. Meridianlink | Global Business vs. Alkami Technology | Global Business vs. Blackbaud | Global Business vs. Enfusion |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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