Correlation Between Merit Medical and 191216CY4
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By analyzing existing cross correlation between Merit Medical Systems and COCA COLA CO, you can compare the effects of market volatilities on Merit Medical and 191216CY4 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 191216CY4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 191216CY4.
Diversification Opportunities for Merit Medical and 191216CY4
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and 191216CY4 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216CY4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Merit Medical i.e., Merit Medical and 191216CY4 go up and down completely randomly.
Pair Corralation between Merit Medical and 191216CY4
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.92 times more return on investment than 191216CY4. However, Merit Medical Systems is 1.09 times less risky than 191216CY4. It trades about 0.16 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.05 per unit of risk. If you would invest 8,218 in Merit Medical Systems on September 1, 2024 and sell it today you would earn a total of 2,172 from holding Merit Medical Systems or generate 26.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Merit Medical Systems vs. COCA COLA CO
Performance |
| Timeline |
| Merit Medical Systems |
| COCA A CO |
Merit Medical and 191216CY4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and 191216CY4
The main advantage of trading using opposite Merit Medical and 191216CY4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 191216CY4 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 191216CY4 will offset losses from the drop in 191216CY4's long position.| Merit Medical vs. Teleflex Incorporated | Merit Medical vs. The Cooper Companies, | Merit Medical vs. West Pharmaceutical Services | Merit Medical vs. ICU Medical |
| 191216CY4 vs. Merit Medical Systems | 191216CY4 vs. Toro Co | 191216CY4 vs. Franklin Wireless Corp | 191216CY4 vs. Postal Realty Trust |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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