Correlation Between Merit Medical and H3Enterprises
Can any of the company-specific risk be diversified away by investing in both Merit Medical and H3Enterprises 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 H3Enterprises 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 H3Enterprises, you can compare the effects of market volatilities on Merit Medical and H3Enterprises 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 H3Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and H3Enterprises.
Diversification Opportunities for Merit Medical and H3Enterprises
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and H3Enterprises is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and H3Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H3Enterprises 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 H3Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H3Enterprises has no effect on the direction of Merit Medical i.e., Merit Medical and H3Enterprises go up and down completely randomly.
Pair Corralation between Merit Medical and H3Enterprises
If you would invest 7,086 in Merit Medical Systems on September 12, 2024 and sell it today you would earn a total of 3,293 from holding Merit Medical Systems or generate 46.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 16.57% |
| Values | Daily Returns |
Merit Medical Systems vs. H3Enterprises
Performance |
| Timeline |
| Merit Medical Systems |
| H3Enterprises |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and H3Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and H3Enterprises
The main advantage of trading using opposite Merit Medical and H3Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, H3Enterprises 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 H3Enterprises will offset losses from the drop in H3Enterprises' long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| H3Enterprises vs. Teleflex Incorporated | H3Enterprises vs. JetBlue Airways Corp | H3Enterprises vs. Xtant Medical Holdings | H3Enterprises vs. Merit Medical Systems |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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