Correlation Between Merck and 059438AH4
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By analyzing existing cross correlation between Merck Company and BANC ONE P, you can compare the effects of market volatilities on Merck and 059438AH4 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 059438AH4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 059438AH4.
Diversification Opportunities for Merck and 059438AH4
Very good diversification
The 3 months correlation between Merck and 059438AH4 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and BANC ONE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANC ONE P 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 059438AH4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANC ONE P has no effect on the direction of Merck i.e., Merck and 059438AH4 go up and down completely randomly.
Pair Corralation between Merck and 059438AH4
Considering the 90-day investment horizon Merck Company is expected to under-perform the 059438AH4. In addition to that, Merck is 2.25 times more volatile than BANC ONE P. It trades about -0.01 of its total potential returns per unit of risk. BANC ONE P is currently generating about 0.18 per unit of volatility. If you would invest 10,584 in BANC ONE P on August 30, 2024 and sell it today you would earn a total of 244.00 from holding BANC ONE P or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Merck Company vs. BANC ONE P
Performance |
| Timeline |
| Merck Company |
| BANC ONE P |
Merck and 059438AH4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 059438AH4
The main advantage of trading using opposite Merck and 059438AH4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 059438AH4 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 059438AH4 will offset losses from the drop in 059438AH4's long position.| Merck vs. Emergent Biosolutions | Merck vs. Bausch Health Companies | Merck vs. Neurocrine Biosciences | Merck vs. Teva Pharma Industries |
| 059438AH4 vs. AEP TEX INC | 059438AH4 vs. US BANK NATIONAL | 059438AH4 vs. Nasdaq Inc | 059438AH4 vs. Vertiv Holdings Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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