Correlation Between Merit Medical and Hunter Douglas
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Hunter Douglas 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 Hunter Douglas 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 Hunter Douglas NV, you can compare the effects of market volatilities on Merit Medical and Hunter Douglas 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 Hunter Douglas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Hunter Douglas.
Diversification Opportunities for Merit Medical and Hunter Douglas
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and Hunter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Hunter Douglas NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Douglas NV 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 Hunter Douglas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Douglas NV has no effect on the direction of Merit Medical i.e., Merit Medical and Hunter Douglas go up and down completely randomly.
Pair Corralation between Merit Medical and Hunter Douglas
If you would invest 18,114 in Hunter Douglas NV on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Hunter Douglas NV or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Merit Medical Systems vs. Hunter Douglas NV
Performance |
| Timeline |
| Merit Medical Systems |
| Hunter Douglas NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and Hunter Douglas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Hunter Douglas
The main advantage of trading using opposite Merit Medical and Hunter Douglas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Hunter Douglas 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 Hunter Douglas will offset losses from the drop in Hunter Douglas' long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| Hunter Douglas vs. Sligro Food Group | Hunter Douglas vs. Summit Materials | Hunter Douglas vs. Barrick Gold Corp | Hunter Douglas vs. Fevertree Drinks Plc |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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