Correlation Between Merit Medical and FitLife Brands,
Can any of the company-specific risk be diversified away by investing in both Merit Medical and FitLife Brands, 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 FitLife Brands, 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 FitLife Brands, Common, you can compare the effects of market volatilities on Merit Medical and FitLife Brands, 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 FitLife Brands,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and FitLife Brands,.
Diversification Opportunities for Merit Medical and FitLife Brands,
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Merit and FitLife is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common 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 FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of Merit Medical i.e., Merit Medical and FitLife Brands, go up and down completely randomly.
Pair Corralation between Merit Medical and FitLife Brands,
Given the investment horizon of 90 days Merit Medical is expected to generate 3.43 times less return on investment than FitLife Brands,. But when comparing it to its historical volatility, Merit Medical Systems is 1.71 times less risky than FitLife Brands,. It trades about 0.04 of its potential returns per unit of risk. FitLife Brands, Common is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,600 in FitLife Brands, Common on August 31, 2024 and sell it today you would earn a total of 1,773 from holding FitLife Brands, Common or generate 110.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Merit Medical Systems vs. FitLife Brands, Common
Performance |
| Timeline |
| Merit Medical Systems |
| FitLife Brands, Common |
Merit Medical and FitLife Brands, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and FitLife Brands,
The main advantage of trading using opposite Merit Medical and FitLife Brands, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, FitLife Brands, 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 FitLife Brands, will offset losses from the drop in FitLife Brands,'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 |
| FitLife Brands, vs. Noble Romans | FitLife Brands, vs. Greystone Logistics | FitLife Brands, vs. Innovative Food Hldg | FitLife Brands, vs. Galaxy Gaming |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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