Correlation Between Merit Medical and BOS BETTER
Can any of the company-specific risk be diversified away by investing in both Merit Medical and BOS BETTER 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 BOS BETTER 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 BOS BETTER ONLINE, you can compare the effects of market volatilities on Merit Medical and BOS BETTER 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 BOS BETTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and BOS BETTER.
Diversification Opportunities for Merit Medical and BOS BETTER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and BOS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and BOS BETTER ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOS BETTER ONLINE 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 BOS BETTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOS BETTER ONLINE has no effect on the direction of Merit Medical i.e., Merit Medical and BOS BETTER go up and down completely randomly.
Pair Corralation between Merit Medical and BOS BETTER
If you would invest 9,600 in Merit Medical Systems on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Merit Medical Systems or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Merit Medical Systems vs. BOS BETTER ONLINE
Performance |
| Timeline |
| Merit Medical Systems |
| BOS BETTER ONLINE |
Merit Medical and BOS BETTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and BOS BETTER
The main advantage of trading using opposite Merit Medical and BOS BETTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, BOS BETTER 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 BOS BETTER will offset losses from the drop in BOS BETTER's long position.| Merit Medical vs. Goodyear Tire Rubber | Merit Medical vs. Global Ship Lease | Merit Medical vs. ON SEMICONDUCTOR | Merit Medical vs. TOREX SEMICONDUCTOR LTD |
| BOS BETTER vs. AM EAGLE OUTFITTERS | BOS BETTER vs. Merit Medical Systems | BOS BETTER vs. URBAN OUTFITTERS | BOS BETTER vs. CarsalesCom |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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