Correlation Between Merit Medical and Gentor Resources
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Gentor Resources 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 Gentor Resources 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 Gentor Resources, you can compare the effects of market volatilities on Merit Medical and Gentor Resources 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 Gentor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Gentor Resources.
Diversification Opportunities for Merit Medical and Gentor Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and Gentor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Gentor Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentor Resources 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 Gentor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentor Resources has no effect on the direction of Merit Medical i.e., Merit Medical and Gentor Resources go up and down completely randomly.
Pair Corralation between Merit Medical and Gentor Resources
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.5 times more return on investment than Gentor Resources. However, Merit Medical Systems is 2.0 times less risky than Gentor Resources. It trades about 0.1 of its potential returns per unit of risk. Gentor Resources is currently generating about -0.06 per unit of risk. If you would invest 7,181 in Merit Medical Systems on September 14, 2024 and sell it today you would earn a total of 3,095 from holding Merit Medical Systems or generate 43.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Merit Medical Systems vs. Gentor Resources
Performance |
| Timeline |
| Merit Medical Systems |
| Gentor Resources |
Merit Medical and Gentor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Gentor Resources
The main advantage of trading using opposite Merit Medical and Gentor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Gentor Resources 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 Gentor Resources will offset losses from the drop in Gentor Resources' long position.| Merit Medical vs. Avita Medical | Merit Medical vs. Sight Sciences | Merit Medical vs. Treace Medical Concepts | Merit Medical vs. Neuropace |
| Gentor Resources vs. Merit Medical Systems | Gentor Resources vs. Evolution Gaming Group | Gentor Resources vs. Contagious Gaming | Gentor Resources vs. enVVeno Medical Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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