Correlation Between Merit Medical and YATRA ONLINE
Can any of the company-specific risk be diversified away by investing in both Merit Medical and YATRA ONLINE 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 Merit Medical and YATRA ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Merit Medical Systems and YATRA ONLINE DL 0001, you can compare the effects of market volatilities on Merit Medical and YATRA ONLINE 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 Merit Medical with a short position of YATRA ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and YATRA ONLINE.
Diversification Opportunities for Merit Medical and YATRA ONLINE
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and YATRA is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and YATRA ONLINE DL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YATRA ONLINE DL and Merit Medical 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 Merit Medical Systems are associated (or correlated) with YATRA ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YATRA ONLINE DL has no effect on the direction of Merit Medical i.e., Merit Medical and YATRA ONLINE go up and down completely randomly.
Pair Corralation between Merit Medical and YATRA ONLINE
Assuming the 90 days trading horizon Merit Medical Systems is expected to generate 0.5 times more return on investment than YATRA ONLINE. However, Merit Medical Systems is 2.02 times less risky than YATRA ONLINE. It trades about 0.13 of its potential returns per unit of risk. YATRA ONLINE DL 0001 is currently generating about -0.01 per unit of risk. If you would invest 7,800 in Merit Medical Systems on October 26, 2024 and sell it today you would earn a total of 2,000 from holding Merit Medical Systems or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. YATRA ONLINE DL 0001
Performance |
| Timeline |
| Merit Medical Systems |
| YATRA ONLINE DL |
Merit Medical and YATRA ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and YATRA ONLINE
The main advantage of trading using opposite Merit Medical and YATRA ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, YATRA ONLINE 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 YATRA ONLINE will offset losses from the drop in YATRA ONLINE's long position.| Merit Medical vs. MCEWEN MINING INC | Merit Medical vs. JD SPORTS FASH | Merit Medical vs. Yanzhou Coal Mining | Merit Medical vs. STGEORGE MINING LTD |
| YATRA ONLINE vs. Mitsubishi Materials | YATRA ONLINE vs. MeVis Medical Solutions | YATRA ONLINE vs. Merit Medical Systems | YATRA ONLINE vs. Rayonier Advanced Materials |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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