Correlation Between Merit Medical and 90352JAC7
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By analyzing existing cross correlation between Merit Medical Systems and UBS 4253 23 MAR 28, you can compare the effects of market volatilities on Merit Medical and 90352JAC7 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 90352JAC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merit Medical and 90352JAC7.
Diversification Opportunities for Merit Medical and 90352JAC7
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Merit and 90352JAC7 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Merit Medical Systems and UBS 4253 23 MAR 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 4253 23 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 90352JAC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS 4253 23 has no effect on the direction of Merit Medical i.e., Merit Medical and 90352JAC7 go up and down completely randomly.
Pair Corralation between Merit Medical and 90352JAC7
Given the investment horizon of 90 days Merit Medical Systems is expected to generate 0.97 times more return on investment than 90352JAC7. However, Merit Medical Systems is 1.03 times less risky than 90352JAC7. It trades about 0.28 of its potential returns per unit of risk. UBS 4253 23 MAR 28 is currently generating about -0.16 per unit of risk. If you would invest 9,531 in Merit Medical Systems on August 29, 2024 and sell it today you would earn a total of 869.00 from holding Merit Medical Systems or generate 9.12% 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. UBS 4253 23 MAR 28
Performance |
| Timeline |
| Merit Medical Systems |
| UBS 4253 23 |
Merit Medical and 90352JAC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merit Medical and 90352JAC7
The main advantage of trading using opposite Merit Medical and 90352JAC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merit Medical position performs unexpectedly, 90352JAC7 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 90352JAC7 will offset losses from the drop in 90352JAC7's long position.The idea behind Merit Medical Systems and UBS 4253 23 MAR 28 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 90352JAC7 vs. Avient Corp | 90352JAC7 vs. Marine Products | 90352JAC7 vs. CF Industries Holdings | 90352JAC7 vs. Universal Display |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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