Correlation Between Merit Medical and AngioDynamics
Can any of the company-specific risk be diversified away by investing in both Merit Medical and AngioDynamics 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 AngioDynamics 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 AngioDynamics, you can compare the effects of market volatilities on Merit Medical and AngioDynamics 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 AngioDynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and AngioDynamics.
Diversification Opportunities for Merit Medical and AngioDynamics
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Merit and AngioDynamics is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and AngioDynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AngioDynamics 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 AngioDynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AngioDynamics has no effect on the direction of Merit Medical i.e., Merit Medical and AngioDynamics go up and down completely randomly.
Pair Corralation between Merit Medical and AngioDynamics
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.47 times more return on investment than AngioDynamics. However, Merit Medical Systems is 2.12 times less risky than AngioDynamics. It trades about 0.06 of its potential returns per unit of risk. AngioDynamics is currently generating about -0.01 per unit of risk. If you would invest 7,097 in Merit Medical Systems on August 28, 2024 and sell it today you would earn a total of 3,395 from holding Merit Medical Systems or generate 47.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. AngioDynamics
Performance |
| Timeline |
| Merit Medical Systems |
| AngioDynamics |
Merit Medical and AngioDynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and AngioDynamics
The main advantage of trading using opposite Merit Medical and AngioDynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, AngioDynamics 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 AngioDynamics will offset losses from the drop in AngioDynamics' long position.| Merit Medical vs. Heartbeam | Merit Medical vs. EUDA Health Holdings | Merit Medical vs. Nutex Health | Merit Medical vs. Healthcare Triangle |
| AngioDynamics vs. AptarGroup | AngioDynamics vs. Repro Med Systems | AngioDynamics vs. AtriCure | AngioDynamics vs. Akoya Biosciences |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |