Correlation Between Merit Medical and 81685VAA1
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By analyzing existing cross correlation between Merit Medical Systems and SRE 325 15 JAN 32, you can compare the effects of market volatilities on Merit Medical and 81685VAA1 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 81685VAA1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 81685VAA1.
Diversification Opportunities for Merit Medical and 81685VAA1
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Merit and 81685VAA1 is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and SRE 325 15 JAN 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRE 325 15 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 81685VAA1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRE 325 15 has no effect on the direction of Merit Medical i.e., Merit Medical and 81685VAA1 go up and down completely randomly.
Pair Corralation between Merit Medical and 81685VAA1
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 1.15 times more return on investment than 81685VAA1. However, Merit Medical is 1.15 times more volatile than SRE 325 15 JAN 32. It trades about 0.13 of its potential returns per unit of risk. SRE 325 15 JAN 32 is currently generating about -0.04 per unit of risk. If you would invest 9,598 in Merit Medical Systems on September 12, 2024 and sell it today you would earn a total of 957.00 from holding Merit Medical Systems or generate 9.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.06% |
| Values | Daily Returns |
Merit Medical Systems vs. SRE 325 15 JAN 32
Performance |
| Timeline |
| Merit Medical Systems |
| SRE 325 15 |
Merit Medical and 81685VAA1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and 81685VAA1
The main advantage of trading using opposite Merit Medical and 81685VAA1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 81685VAA1 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 81685VAA1 will offset losses from the drop in 81685VAA1's long position.| Merit Medical vs. Avita Medical | Merit Medical vs. Sight Sciences | Merit Medical vs. Treace Medical Concepts | Merit Medical vs. Neuropace |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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