Correlation Between Merit Medical and GCP Applied
Can any of the company-specific risk be diversified away by investing in both Merit Medical and GCP Applied 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 GCP Applied 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 GCP Applied Technologies, you can compare the effects of market volatilities on Merit Medical and GCP Applied 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 GCP Applied. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and GCP Applied.
Diversification Opportunities for Merit Medical and GCP Applied
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and GCP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and GCP Applied Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCP Applied Technologies 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 GCP Applied. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCP Applied Technologies has no effect on the direction of Merit Medical i.e., Merit Medical and GCP Applied go up and down completely randomly.
Pair Corralation between Merit Medical and GCP Applied
If you would invest 9,730 in Merit Medical Systems on October 28, 2024 and sell it today you would earn a total of 734.00 from holding Merit Medical Systems or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Merit Medical Systems vs. GCP Applied Technologies
Performance |
| Timeline |
| Merit Medical Systems |
| GCP Applied Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and GCP Applied Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and GCP Applied
The main advantage of trading using opposite Merit Medical and GCP Applied positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, GCP Applied 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 GCP Applied will offset losses from the drop in GCP Applied'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 |
| GCP Applied vs. Codexis | GCP Applied vs. Ecolab Inc | GCP Applied vs. Radcom | GCP Applied vs. Grupo Televisa SAB |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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