Correlation Between Merit Medical and GRAINGER
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merit Medical Systems and GRAINGER W W, you can compare the effects of market volatilities on Merit Medical and GRAINGER 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 GRAINGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and GRAINGER.
Diversification Opportunities for Merit Medical and GRAINGER
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Merit and GRAINGER is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and GRAINGER W W in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRAINGER W W 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 GRAINGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRAINGER W W has no effect on the direction of Merit Medical i.e., Merit Medical and GRAINGER go up and down completely randomly.
Pair Corralation between Merit Medical and GRAINGER
Given the investment horizon of 90 days Merit Medical is expected to generate 155.04 times less return on investment than GRAINGER. But when comparing it to its historical volatility, Merit Medical Systems is 79.33 times less risky than GRAINGER. It trades about 0.06 of its potential returns per unit of risk. GRAINGER W W is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,764 in GRAINGER W W on August 31, 2024 and sell it today you would earn a total of 88.00 from holding GRAINGER W W or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 37.45% |
| Values | Daily Returns |
Merit Medical Systems vs. GRAINGER W W
Performance |
| Timeline |
| Merit Medical Systems |
| GRAINGER W W |
Merit Medical and GRAINGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and GRAINGER
The main advantage of trading using opposite Merit Medical and GRAINGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, GRAINGER 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 GRAINGER will offset losses from the drop in GRAINGER'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 |
| GRAINGER vs. AEP TEX INC | GRAINGER vs. US BANK NATIONAL | GRAINGER vs. Bank of America | GRAINGER vs. GE Aerospace |
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..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |