Correlation Between Merit Medical and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Accent Resources 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 Accent Resources 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 Accent Resources NL, you can compare the effects of market volatilities on Merit Medical and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Accent Resources.
Diversification Opportunities for Merit Medical and Accent Resources
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Merit and Accent is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Merit Medical i.e., Merit Medical and Accent Resources go up and down completely randomly.
Pair Corralation between Merit Medical and Accent Resources
If you would invest 9,200 in Merit Medical Systems on October 20, 2024 and sell it today you would earn a total of 700.00 from holding Merit Medical Systems or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Accent Resources NL
Performance |
| Timeline |
| Merit Medical Systems |
| Accent Resources |
Merit Medical and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Accent Resources
The main advantage of trading using opposite Merit Medical and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Merit Medical vs. DEVRY EDUCATION GRP | Merit Medical vs. MAG SILVER | Merit Medical vs. EMBARK EDUCATION LTD | Merit Medical vs. ON SEMICONDUCTOR |
| Accent Resources vs. Rio Tinto Group | Accent Resources vs. Anglo American plc | Accent Resources vs. Mineral Resources Limited | Accent Resources vs. Liontown Resources Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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