Correlation Between Merit Medical and SWEDA
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By analyzing existing cross correlation between Merit Medical Systems and SWEDA 1538 16 NOV 26, you can compare the effects of market volatilities on Merit Medical and SWEDA 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 SWEDA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and SWEDA.
Diversification Opportunities for Merit Medical and SWEDA
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Merit and SWEDA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and SWEDA 1538 16 NOV 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWEDA 1538 16 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 SWEDA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWEDA 1538 16 has no effect on the direction of Merit Medical i.e., Merit Medical and SWEDA go up and down completely randomly.
Pair Corralation between Merit Medical and SWEDA
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.45 times more return on investment than SWEDA. However, Merit Medical Systems is 2.24 times less risky than SWEDA. It trades about 0.06 of its potential returns per unit of risk. SWEDA 1538 16 NOV 26 is currently generating about -0.34 per unit of risk. If you would invest 10,424 in Merit Medical Systems on September 13, 2024 and sell it today you would earn a total of 128.00 from holding Merit Medical Systems or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Merit Medical Systems vs. SWEDA 1538 16 NOV 26
Performance |
| Timeline |
| Merit Medical Systems |
| SWEDA 1538 16 |
Merit Medical and SWEDA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and SWEDA
The main advantage of trading using opposite Merit Medical and SWEDA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, SWEDA 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 SWEDA will offset losses from the drop in SWEDA's long position.| Merit Medical vs. Avita Medical | Merit Medical vs. Sight Sciences | Merit Medical vs. Treace Medical Concepts | Merit Medical vs. Neuropace |
| SWEDA vs. Weibo Corp | SWEDA vs. Franklin Wireless Corp | SWEDA vs. Pinterest | SWEDA vs. 51Talk Online Education |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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