Correlation Between Merit Medical and TEXTRON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merit Medical Systems and TEXTRON INC 4, you can compare the effects of market volatilities on Merit Medical and TEXTRON 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 TEXTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and TEXTRON.
Diversification Opportunities for Merit Medical and TEXTRON
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and TEXTRON is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and TEXTRON INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEXTRON INC 4 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 TEXTRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEXTRON INC 4 has no effect on the direction of Merit Medical i.e., Merit Medical and TEXTRON go up and down completely randomly.
Pair Corralation between Merit Medical and TEXTRON
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 9.47 times more return on investment than TEXTRON. However, Merit Medical is 9.47 times more volatile than TEXTRON INC 4. It trades about 0.26 of its potential returns per unit of risk. TEXTRON INC 4 is currently generating about 0.05 per unit of risk. If you would invest 9,808 in Merit Medical Systems on October 25, 2024 and sell it today you would earn a total of 665.00 from holding Merit Medical Systems or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Merit Medical Systems vs. TEXTRON INC 4
Performance |
| Timeline |
| Merit Medical Systems |
| TEXTRON INC 4 |
Merit Medical and TEXTRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and TEXTRON
The main advantage of trading using opposite Merit Medical and TEXTRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, TEXTRON 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 TEXTRON will offset losses from the drop in TEXTRON'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 |
| TEXTRON vs. Columbia Sportswear | TEXTRON vs. G III Apparel Group | TEXTRON vs. Energold Drilling Corp | TEXTRON vs. Grounded People Apparel |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |