Correlation Between Merck and COMCAST
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By analyzing existing cross correlation between Merck Company and COMCAST P NEW, you can compare the effects of market volatilities on Merck and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and COMCAST.
Diversification Opportunities for Merck and COMCAST
Very good diversification
The 3 months correlation between Merck and COMCAST is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Merck i.e., Merck and COMCAST go up and down completely randomly.
Pair Corralation between Merck and COMCAST
Considering the 90-day investment horizon Merck Company is expected to generate 0.81 times more return on investment than COMCAST. However, Merck Company is 1.23 times less risky than COMCAST. It trades about -0.17 of its potential returns per unit of risk. COMCAST P NEW is currently generating about -0.26 per unit of risk. If you would invest 10,398 in Merck Company on August 26, 2024 and sell it today you would lose (480.00) from holding Merck Company or give up 4.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Merck Company vs. COMCAST P NEW
Performance |
| Timeline |
| Merck Company |
| COMCAST P NEW |
Merck and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and COMCAST
The main advantage of trading using opposite Merck and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Merck vs. Capricor Therapeutics | Merck vs. Soleno Therapeutics | Merck vs. Bio Path Holdings | Merck vs. Moleculin Biotech |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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