Correlation Between Merck and BOSTON
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merck Company and BOSTON PPTYS LTD, you can compare the effects of market volatilities on Merck and BOSTON 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 BOSTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and BOSTON.
Diversification Opportunities for Merck and BOSTON
Weak diversification
The 3 months correlation between Merck and BOSTON is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and BOSTON PPTYS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOSTON PPTYS LTD 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 BOSTON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOSTON PPTYS LTD has no effect on the direction of Merck i.e., Merck and BOSTON go up and down completely randomly.
Pair Corralation between Merck and BOSTON
Considering the 90-day investment horizon Merck Company is expected to generate 1.58 times more return on investment than BOSTON. However, Merck is 1.58 times more volatile than BOSTON PPTYS LTD. It trades about -0.03 of its potential returns per unit of risk. BOSTON PPTYS LTD is currently generating about -0.22 per unit of risk. If you would invest 10,423 in Merck Company on August 29, 2024 and sell it today you would lose (112.50) from holding Merck Company or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Merck Company vs. BOSTON PPTYS LTD
Performance |
| Timeline |
| Merck Company |
| BOSTON PPTYS LTD |
Merck and BOSTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and BOSTON
The main advantage of trading using opposite Merck and BOSTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, BOSTON 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 BOSTON will offset losses from the drop in BOSTON's long position.| Merck vs. Pharvaris BV | Merck vs. Brinker International | Merck vs. Alcoa Corp | Merck vs. Direxion Daily FTSE |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |