Correlation Between Merit Medical and 23291KAJ4
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merit Medical Systems and DH EUROPE FINANCE, you can compare the effects of market volatilities on Merit Medical and 23291KAJ4 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 23291KAJ4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 23291KAJ4.
Diversification Opportunities for Merit Medical and 23291KAJ4
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and 23291KAJ4 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and DH EUROPE FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DH EUROPE FINANCE 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 23291KAJ4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DH EUROPE FINANCE has no effect on the direction of Merit Medical i.e., Merit Medical and 23291KAJ4 go up and down completely randomly.
Pair Corralation between Merit Medical and 23291KAJ4
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 1.9 times more return on investment than 23291KAJ4. However, Merit Medical is 1.9 times more volatile than DH EUROPE FINANCE. It trades about 0.13 of its potential returns per unit of risk. DH EUROPE FINANCE is currently generating about 0.01 per unit of risk. If you would invest 6,878 in Merit Medical Systems on September 4, 2024 and sell it today you would earn a total of 3,604 from holding Merit Medical Systems or generate 52.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.09% |
| Values | Daily Returns |
Merit Medical Systems vs. DH EUROPE FINANCE
Performance |
| Timeline |
| Merit Medical Systems |
| DH EUROPE FINANCE |
Merit Medical and 23291KAJ4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and 23291KAJ4
The main advantage of trading using opposite Merit Medical and 23291KAJ4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 23291KAJ4 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 23291KAJ4 will offset losses from the drop in 23291KAJ4'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, |
| 23291KAJ4 vs. Marfrig Global Foods | 23291KAJ4 vs. Datadog | 23291KAJ4 vs. Tyson Foods | 23291KAJ4 vs. Kaltura |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |