Correlation Between Merit Medical and BPCEGP
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By analyzing existing cross correlation between Merit Medical Systems and BPCEGP 45 15 MAR 25, you can compare the effects of market volatilities on Merit Medical and BPCEGP 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 BPCEGP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and BPCEGP.
Diversification Opportunities for Merit Medical and BPCEGP
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Merit and BPCEGP is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and BPCEGP 45 15 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPCEGP 45 15 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 BPCEGP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPCEGP 45 15 has no effect on the direction of Merit Medical i.e., Merit Medical and BPCEGP go up and down completely randomly.
Pair Corralation between Merit Medical and BPCEGP
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 3.76 times more return on investment than BPCEGP. However, Merit Medical is 3.76 times more volatile than BPCEGP 45 15 MAR 25. It trades about 0.12 of its potential returns per unit of risk. BPCEGP 45 15 MAR 25 is currently generating about -0.19 per unit of risk. If you would invest 9,557 in Merit Medical Systems on September 3, 2024 and sell it today you would earn a total of 833.00 from holding Merit Medical Systems or generate 8.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.13% |
| Values | Daily Returns |
Merit Medical Systems vs. BPCEGP 45 15 MAR 25
Performance |
| Timeline |
| Merit Medical Systems |
| BPCEGP 45 15 |
Merit Medical and BPCEGP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and BPCEGP
The main advantage of trading using opposite Merit Medical and BPCEGP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, BPCEGP 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 BPCEGP will offset losses from the drop in BPCEGP's long position.The idea behind Merit Medical Systems and BPCEGP 45 15 MAR 25 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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