Correlation Between Merit Medical and CARPENTER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merit Medical Systems and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on Merit Medical and CARPENTER 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 CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and CARPENTER.
Diversification Opportunities for Merit Medical and CARPENTER
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Merit and CARPENTER is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY 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 CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of Merit Medical i.e., Merit Medical and CARPENTER go up and down completely randomly.
Pair Corralation between Merit Medical and CARPENTER
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 3.22 times more return on investment than CARPENTER. However, Merit Medical is 3.22 times more volatile than CARPENTER TECHNOLOGY P. It trades about 0.1 of its potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about 0.01 per unit of risk. If you would invest 7,537 in Merit Medical Systems on December 2, 2024 and sell it today you would earn a total of 2,667 from holding Merit Medical Systems or generate 35.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| Merit Medical Systems |
| CARPENTER TECHNOLOGY |
Merit Medical and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and CARPENTER
The main advantage of trading using opposite Merit Medical and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER's long position.| Merit Medical vs. ReShape Lifesciences | Merit Medical vs. Bone Biologics Corp | Merit Medical vs. Tivic Health Systems | Merit Medical vs. Nuwellis |
| CARPENTER vs. Mesa Air Group | CARPENTER vs. Delta Air Lines | CARPENTER vs. Singapore Airlines | CARPENTER vs. Global Crossing Airlines |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |