Correlation Between Merit Medical and Transgene
Can any of the company-specific risk be diversified away by investing in both Merit Medical and Transgene 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 Transgene 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 Transgene SA, you can compare the effects of market volatilities on Merit Medical and Transgene 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 Transgene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and Transgene.
Diversification Opportunities for Merit Medical and Transgene
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Merit and Transgene is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and Transgene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transgene SA 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 Transgene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transgene SA has no effect on the direction of Merit Medical i.e., Merit Medical and Transgene go up and down completely randomly.
Pair Corralation between Merit Medical and Transgene
If you would invest 9,531 in Merit Medical Systems on August 29, 2024 and sell it today you would earn a total of 869.00 from holding Merit Medical Systems or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Merit Medical Systems vs. Transgene SA
Performance |
| Timeline |
| Merit Medical Systems |
| Transgene SA |
Merit Medical and Transgene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and Transgene
The main advantage of trading using opposite Merit Medical and Transgene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, Transgene 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 Transgene will offset losses from the drop in Transgene's long position.| Merit Medical vs. Femasys | Merit Medical vs. Sharps Technology Warrant | Merit Medical vs. GlucoTrack | Merit Medical vs. Walt Disney |
| Transgene vs. Compania Cervecerias Unidas | Transgene vs. Silo Pharma | Transgene vs. Skechers USA | Transgene vs. JJill 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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