Correlation Between Merit Medical and SilverSPAC Unit
Can any of the company-specific risk be diversified away by investing in both Merit Medical and SilverSPAC Unit 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 SilverSPAC Unit 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 SilverSPAC Unit, you can compare the effects of market volatilities on Merit Medical and SilverSPAC Unit 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 SilverSPAC Unit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and SilverSPAC Unit.
Diversification Opportunities for Merit Medical and SilverSPAC Unit
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Merit and SilverSPAC is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and SilverSPAC Unit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SilverSPAC Unit 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 SilverSPAC Unit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SilverSPAC Unit has no effect on the direction of Merit Medical i.e., Merit Medical and SilverSPAC Unit go up and down completely randomly.
Pair Corralation between Merit Medical and SilverSPAC Unit
If you would invest 9,908 in Merit Medical Systems on September 4, 2024 and sell it today you would earn a total of 575.00 from holding Merit Medical Systems or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Merit Medical Systems vs. SilverSPAC Unit
Performance |
| Timeline |
| Merit Medical Systems |
| SilverSPAC Unit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merit Medical and SilverSPAC Unit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and SilverSPAC Unit
The main advantage of trading using opposite Merit Medical and SilverSPAC Unit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, SilverSPAC Unit 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 SilverSPAC Unit will offset losses from the drop in SilverSPAC Unit's long position.| Merit Medical vs. Baxter International | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ResMed Inc | Merit Medical vs. The Cooper Companies, |
| SilverSPAC Unit vs. Space Communication | SilverSPAC Unit vs. KVH Industries | SilverSPAC Unit vs. Aegon NV ADR | SilverSPAC Unit vs. BCE 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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