Correlation Between Merit Medical and Hasbro
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Hasbro 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 Hasbro 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 Hasbro Inc, you can compare the effects of market volatilities on Merit Medical and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Hasbro.
Diversification Opportunities for Merit Medical and Hasbro
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merit and Hasbro is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro Inc 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Merit Medical i.e., Merit Medical and Hasbro go up and down completely randomly.
Pair Corralation between Merit Medical and Hasbro
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.8 times more return on investment than Hasbro. However, Merit Medical Systems is 1.24 times less risky than Hasbro. It trades about 0.12 of its potential returns per unit of risk. Hasbro Inc is currently generating about -0.16 per unit of risk. If you would invest 9,883 in Merit Medical Systems on August 29, 2024 and sell it today you would earn a total of 629.50 from holding Merit Medical Systems or generate 6.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Hasbro Inc
Performance |
| Timeline |
| Merit Medical Systems |
| Hasbro Inc |
Merit Medical and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Hasbro
The main advantage of trading using opposite Merit Medical and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| Merit Medical vs. Femasys | Merit Medical vs. Sharps Technology Warrant | Merit Medical vs. GlucoTrack | Merit Medical vs. Walt Disney |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |