Correlation Between Merit Medical and MICROSOFT
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By analyzing existing cross correlation between Merit Medical Systems and MICROSOFT PORATION, you can compare the effects of market volatilities on Merit Medical and MICROSOFT 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 MICROSOFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and MICROSOFT.
Diversification Opportunities for Merit Medical and MICROSOFT
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Merit and MICROSOFT is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and MICROSOFT PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICROSOFT 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 MICROSOFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICROSOFT PORATION has no effect on the direction of Merit Medical i.e., Merit Medical and MICROSOFT go up and down completely randomly.
Pair Corralation between Merit Medical and MICROSOFT
Given the investment horizon of 90 days Merit Medical Systems is expected to under-perform the MICROSOFT. In addition to that, Merit Medical is 1.15 times more volatile than MICROSOFT PORATION. It trades about -0.16 of its total potential returns per unit of risk. MICROSOFT PORATION is currently generating about -0.01 per unit of volatility. If you would invest 6,593 in MICROSOFT PORATION on December 4, 2024 and sell it today you would lose (33.00) from holding MICROSOFT PORATION or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Merit Medical Systems vs. MICROSOFT PORATION
Performance |
| Timeline |
| Merit Medical Systems |
| MICROSOFT PORATION |
Merit Medical and MICROSOFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and MICROSOFT
The main advantage of trading using opposite Merit Medical and MICROSOFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, MICROSOFT 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 MICROSOFT will offset losses from the drop in MICROSOFT'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 |
| MICROSOFT vs. Repligen | MICROSOFT vs. National Vision Holdings | MICROSOFT vs. Merit Medical Systems | MICROSOFT vs. Amgen Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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