Correlation Between Merit Medical and IX Acquisition
Can any of the company-specific risk be diversified away by investing in both Merit Medical and IX Acquisition 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 IX Acquisition 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 IX Acquisition Corp, you can compare the effects of market volatilities on Merit Medical and IX Acquisition 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 IX Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and IX Acquisition.
Diversification Opportunities for Merit Medical and IX Acquisition
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Merit and IXAQU is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and IX Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IX Acquisition Corp 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 IX Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IX Acquisition Corp has no effect on the direction of Merit Medical i.e., Merit Medical and IX Acquisition go up and down completely randomly.
Pair Corralation between Merit Medical and IX Acquisition
If you would invest 9,590 in Merit Medical Systems on August 30, 2024 and sell it today you would earn a total of 776.00 from holding Merit Medical Systems or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Merit Medical Systems vs. IX Acquisition Corp
Performance |
| Timeline |
| Merit Medical Systems |
| IX Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and IX Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and IX Acquisition
The main advantage of trading using opposite Merit Medical and IX Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, IX Acquisition 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 IX Acquisition will offset losses from the drop in IX Acquisition's long position.| Merit Medical vs. Femasys | Merit Medical vs. Sharps Technology Warrant | Merit Medical vs. GlucoTrack | Merit Medical vs. Walt Disney |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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