Correlation Between Merit Medical and LOEWS
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By analyzing existing cross correlation between Merit Medical Systems and LOEWS P 375, you can compare the effects of market volatilities on Merit Medical and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and LOEWS.
Diversification Opportunities for Merit Medical and LOEWS
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Merit and LOEWS is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and LOEWS P 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 375 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 375 has no effect on the direction of Merit Medical i.e., Merit Medical and LOEWS go up and down completely randomly.
Pair Corralation between Merit Medical and LOEWS
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 4.68 times more return on investment than LOEWS. However, Merit Medical is 4.68 times more volatile than LOEWS P 375. It trades about 0.05 of its potential returns per unit of risk. LOEWS P 375 is currently generating about 0.0 per unit of risk. If you would invest 7,245 in Merit Medical Systems on August 30, 2024 and sell it today you would earn a total of 3,121 from holding Merit Medical Systems or generate 43.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.92% |
| Values | Daily Returns |
Merit Medical Systems vs. LOEWS P 375
Performance |
| Timeline |
| Merit Medical Systems |
| LOEWS P 375 |
Merit Medical and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and LOEWS
The main advantage of trading using opposite Merit Medical and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS's long position.| Merit Medical vs. Femasys | Merit Medical vs. Sharps Technology Warrant | Merit Medical vs. GlucoTrack | Merit Medical vs. Walt Disney |
| LOEWS vs. Postal Realty Trust | LOEWS vs. Merit Medical Systems | LOEWS vs. Mesa Air Group | LOEWS vs. Westinghouse Air Brake |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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