Correlation Between Merit Medical and Loop Media
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Loop Media 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 Loop Media 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 Loop Media, you can compare the effects of market volatilities on Merit Medical and Loop Media 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 Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Loop Media.
Diversification Opportunities for Merit Medical and Loop Media
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merit and Loop is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media 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 Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of Merit Medical i.e., Merit Medical and Loop Media go up and down completely randomly.
Pair Corralation between Merit Medical and Loop Media
If you would invest 9,535 in Merit Medical Systems on August 24, 2024 and sell it today you would earn a total of 968.00 from holding Merit Medical Systems or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Merit Medical Systems vs. Loop Media
Performance |
| Timeline |
| Merit Medical Systems |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Loop Media
The main advantage of trading using opposite Merit Medical and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Loop Media 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 Loop Media will offset losses from the drop in Loop Media's long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| Loop Media vs. VirnetX Holding Corp | Loop Media vs. Merit Medical Systems | Loop Media vs. Acco Brands | Loop Media vs. Nike Inc |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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