Correlation Between Merck and 04686JAE1
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By analyzing existing cross correlation between Merck Company and ATH 345 15 MAY 52, you can compare the effects of market volatilities on Merck and 04686JAE1 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 04686JAE1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 04686JAE1.
Diversification Opportunities for Merck and 04686JAE1
Poor diversification
The 3 months correlation between Merck and 04686JAE1 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and ATH 345 15 MAY 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 345 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 04686JAE1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 345 15 has no effect on the direction of Merck i.e., Merck and 04686JAE1 go up and down completely randomly.
Pair Corralation between Merck and 04686JAE1
Considering the 90-day investment horizon Merck is expected to generate 20.9 times less return on investment than 04686JAE1. But when comparing it to its historical volatility, Merck Company is 1.55 times less risky than 04686JAE1. It trades about 0.0 of its potential returns per unit of risk. ATH 345 15 MAY 52 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,607 in ATH 345 15 MAY 52 on September 3, 2024 and sell it today you would earn a total of 61.00 from holding ATH 345 15 MAY 52 or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.2% |
| Values | Daily Returns |
Merck Company vs. ATH 345 15 MAY 52
Performance |
| Timeline |
| Merck Company |
| ATH 345 15 |
Merck and 04686JAE1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 04686JAE1
The main advantage of trading using opposite Merck and 04686JAE1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 04686JAE1 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 04686JAE1 will offset losses from the drop in 04686JAE1's long position.| Merck vs. Pfizer Inc | Merck vs. Johnson Johnson | Merck vs. Highway Holdings Limited | Merck vs. QCR Holdings |
| 04686JAE1 vs. Harmony Gold Mining | 04686JAE1 vs. Ambev SA ADR | 04686JAE1 vs. Vindicator Silver Lead Mining | 04686JAE1 vs. Boston Beer |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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