Correlation Between Merit Medical and STATE
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By analyzing existing cross correlation between Merit Medical Systems and STATE STREET P, you can compare the effects of market volatilities on Merit Medical and STATE 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 STATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and STATE.
Diversification Opportunities for Merit Medical and STATE
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and STATE is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and STATE STREET P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STATE STREET P 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 STATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STATE STREET P has no effect on the direction of Merit Medical i.e., Merit Medical and STATE go up and down completely randomly.
Pair Corralation between Merit Medical and STATE
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 2.1 times more return on investment than STATE. However, Merit Medical is 2.1 times more volatile than STATE STREET P. It trades about 0.25 of its potential returns per unit of risk. STATE STREET P is currently generating about 0.2 per unit of risk. If you would invest 9,908 in Merit Medical Systems on September 5, 2024 and sell it today you would earn a total of 641.00 from holding Merit Medical Systems or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Merit Medical Systems vs. STATE STREET P
Performance |
| Timeline |
| Merit Medical Systems |
| STATE STREET P |
Merit Medical and STATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and STATE
The main advantage of trading using opposite Merit Medical and STATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, STATE 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 STATE will offset losses from the drop in STATE'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 |
| STATE vs. Aquestive Therapeutics | STATE vs. Sonida Senior Living | STATE vs. Merit Medical Systems | STATE vs. Esperion Therapeutics |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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