Correlation Between Merit Medical and EUDA Health
Can any of the company-specific risk be diversified away by investing in both Merit Medical and EUDA Health 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 EUDA Health 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 EUDA Health Holdings, you can compare the effects of market volatilities on Merit Medical and EUDA Health 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 EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and EUDA Health.
Diversification Opportunities for Merit Medical and EUDA Health
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Merit and EUDA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and EUDA Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUDA Health Holdings 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 EUDA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUDA Health Holdings has no effect on the direction of Merit Medical i.e., Merit Medical and EUDA Health go up and down completely randomly.
Pair Corralation between Merit Medical and EUDA Health
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.29 times more return on investment than EUDA Health. However, Merit Medical Systems is 3.45 times less risky than EUDA Health. It trades about 0.29 of its potential returns per unit of risk. EUDA Health Holdings is currently generating about 0.0 per unit of risk. If you would invest 9,490 in Merit Medical Systems on August 31, 2024 and sell it today you would earn a total of 900.00 from holding Merit Medical Systems or generate 9.48% 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. EUDA Health Holdings
Performance |
| Timeline |
| Merit Medical Systems |
| EUDA Health Holdings |
Merit Medical and EUDA Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and EUDA Health
The main advantage of trading using opposite Merit Medical and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, EUDA Health 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 EUDA Health will offset losses from the drop in EUDA Health's long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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