Correlation Between Merit Medical and 78490FMG1
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By analyzing existing cross correlation between Merit Medical Systems and US78490FMG18, you can compare the effects of market volatilities on Merit Medical and 78490FMG1 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 78490FMG1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 78490FMG1.
Diversification Opportunities for Merit Medical and 78490FMG1
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Merit and 78490FMG1 is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and US78490FMG18 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US78490FMG18 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 78490FMG1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US78490FMG18 has no effect on the direction of Merit Medical i.e., Merit Medical and 78490FMG1 go up and down completely randomly.
Pair Corralation between Merit Medical and 78490FMG1
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.32 times more return on investment than 78490FMG1. However, Merit Medical Systems is 3.09 times less risky than 78490FMG1. It trades about -0.03 of its potential returns per unit of risk. US78490FMG18 is currently generating about -0.2 per unit of risk. If you would invest 10,503 in Merit Medical Systems on October 22, 2024 and sell it today you would lose (213.00) from holding Merit Medical Systems or give up 2.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 25.0% |
| Values | Daily Returns |
Merit Medical Systems vs. US78490FMG18
Performance |
| Timeline |
| Merit Medical Systems |
| US78490FMG18 |
Merit Medical and 78490FMG1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and 78490FMG1
The main advantage of trading using opposite Merit Medical and 78490FMG1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 78490FMG1 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 78490FMG1 will offset losses from the drop in 78490FMG1'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 |
| 78490FMG1 vs. Celsius Holdings | 78490FMG1 vs. Fomento Economico Mexicano | 78490FMG1 vs. Tandem Diabetes Care | 78490FMG1 vs. Merit Medical Systems |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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