Correlation Between Merit Medical and ISPIM
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By analyzing existing cross correlation between Merit Medical Systems and ISPIM 77, you can compare the effects of market volatilities on Merit Medical and ISPIM 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 ISPIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and ISPIM.
Diversification Opportunities for Merit Medical and ISPIM
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Merit and ISPIM is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and ISPIM 77 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISPIM 77 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 ISPIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISPIM 77 has no effect on the direction of Merit Medical i.e., Merit Medical and ISPIM go up and down completely randomly.
Pair Corralation between Merit Medical and ISPIM
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 17.06 times more return on investment than ISPIM. However, Merit Medical is 17.06 times more volatile than ISPIM 77. It trades about 0.15 of its potential returns per unit of risk. ISPIM 77 is currently generating about -0.22 per unit of risk. If you would invest 10,168 in Merit Medical Systems on September 14, 2024 and sell it today you would earn a total of 307.00 from holding Merit Medical Systems or generate 3.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. ISPIM 77
Performance |
| Timeline |
| Merit Medical Systems |
| ISPIM 77 |
Merit Medical and ISPIM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and ISPIM
The main advantage of trading using opposite Merit Medical and ISPIM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, ISPIM 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 ISPIM will offset losses from the drop in ISPIM's long position.| Merit Medical vs. Avita Medical | Merit Medical vs. Sight Sciences | Merit Medical vs. Treace Medical Concepts | Merit Medical vs. Neuropace |
| ISPIM vs. Inflection Point Acquisition | ISPIM vs. Alvarium Tiedemann Holdings | ISPIM vs. Iridium Communications | ISPIM vs. Grupo Televisa SAB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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