Correlation Between Merit Medical and GENERAL
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By analyzing existing cross correlation between Merit Medical Systems and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Merit Medical and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and GENERAL.
Diversification Opportunities for Merit Medical and GENERAL
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and GENERAL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Merit Medical i.e., Merit Medical and GENERAL go up and down completely randomly.
Pair Corralation between Merit Medical and GENERAL
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 3.36 times more return on investment than GENERAL. However, Merit Medical is 3.36 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.09 of its potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about 0.02 per unit of risk. If you would invest 6,780 in Merit Medical Systems on September 12, 2024 and sell it today you would earn a total of 3,599 from holding Merit Medical Systems or generate 53.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.7% |
| Values | Daily Returns |
Merit Medical Systems vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Merit Medical Systems |
| GENERAL DYNAMICS PORATION |
Merit Medical and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and GENERAL
The main advantage of trading using opposite Merit Medical and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
| GENERAL vs. Apogee Enterprises | GENERAL vs. Genfit | GENERAL vs. Tarsus Pharmaceuticals | GENERAL vs. Valneva SE ADR |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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