Correlation Between Merck and 02379DAA8
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merck Company and AAL 385 15 FEB 28, you can compare the effects of market volatilities on Merck and 02379DAA8 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 Merck with a short position of 02379DAA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 02379DAA8.
Diversification Opportunities for Merck and 02379DAA8
Excellent diversification
The 3 months correlation between Merck and 02379DAA8 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and AAL 385 15 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 385 15 and Merck 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 Merck Company are associated (or correlated) with 02379DAA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 385 15 has no effect on the direction of Merck i.e., Merck and 02379DAA8 go up and down completely randomly.
Pair Corralation between Merck and 02379DAA8
Considering the 90-day investment horizon Merck Company is expected to under-perform the 02379DAA8. But the stock apears to be less risky and, when comparing its historical volatility, Merck Company is 2.33 times less risky than 02379DAA8. The stock trades about 0.0 of its potential returns per unit of risk. The AAL 385 15 FEB 28 is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,700 in AAL 385 15 FEB 28 on September 3, 2024 and sell it today you would earn a total of 691.00 from holding AAL 385 15 FEB 28 or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 11.58% |
| Values | Daily Returns |
Merck Company vs. AAL 385 15 FEB 28
Performance |
| Timeline |
| Merck Company |
| AAL 385 15 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Merck and 02379DAA8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 02379DAA8
The main advantage of trading using opposite Merck and 02379DAA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 02379DAA8 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 02379DAA8 will offset losses from the drop in 02379DAA8's long position.| Merck vs. Pfizer Inc | Merck vs. Johnson Johnson | Merck vs. Highway Holdings Limited | Merck vs. QCR Holdings |
| 02379DAA8 vs. Ainsworth Game Technology | 02379DAA8 vs. Duluth Holdings | 02379DAA8 vs. Kontoor Brands | 02379DAA8 vs. Silo Pharma |
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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |