Correlation Between Merit Medical and Sezzle Common
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Sezzle Common 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 Sezzle Common 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 Sezzle Common Stock, you can compare the effects of market volatilities on Merit Medical and Sezzle Common 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 Sezzle Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Sezzle Common.
Diversification Opportunities for Merit Medical and Sezzle Common
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Merit and Sezzle is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Sezzle Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sezzle Common Stock 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 Sezzle Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sezzle Common Stock has no effect on the direction of Merit Medical i.e., Merit Medical and Sezzle Common go up and down completely randomly.
Pair Corralation between Merit Medical and Sezzle Common
Given the investment horizon of 90 days Merit Medical is expected to generate 10.83 times less return on investment than Sezzle Common. But when comparing it to its historical volatility, Merit Medical Systems is 8.77 times less risky than Sezzle Common. It trades about 0.13 of its potential returns per unit of risk. Sezzle Common Stock is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 14,926 in Sezzle Common Stock on September 12, 2024 and sell it today you would earn a total of 17,999 from holding Sezzle Common Stock or generate 120.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. Sezzle Common Stock
Performance |
| Timeline |
| Merit Medical Systems |
| Sezzle Common Stock |
Merit Medical and Sezzle Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Sezzle Common
The main advantage of trading using opposite Merit Medical and Sezzle Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Sezzle Common 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 Sezzle Common will offset losses from the drop in Sezzle Common's long position.| Merit Medical vs. Avita Medical | Merit Medical vs. Sight Sciences | Merit Medical vs. Treace Medical Concepts | Merit Medical vs. Neuropace |
| Sezzle Common vs. Bill Com Holdings | Sezzle Common vs. Planet Fitness | Sezzle Common vs. NetSol Technologies | Sezzle Common vs. Playtech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |