Correlation Between Merck and 361448AU7
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By analyzing existing cross correlation between Merck Company and GATX P 52, you can compare the effects of market volatilities on Merck and 361448AU7 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 361448AU7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 361448AU7.
Diversification Opportunities for Merck and 361448AU7
Excellent diversification
The 3 months correlation between Merck and 361448AU7 is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and GATX P 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX P 52 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 361448AU7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX P 52 has no effect on the direction of Merck i.e., Merck and 361448AU7 go up and down completely randomly.
Pair Corralation between Merck and 361448AU7
Considering the 90-day investment horizon Merck Company is expected to generate 0.21 times more return on investment than 361448AU7. However, Merck Company is 4.71 times less risky than 361448AU7. It trades about -0.01 of its potential returns per unit of risk. GATX P 52 is currently generating about -0.46 per unit of risk. If you would invest 10,373 in Merck Company on August 30, 2024 and sell it today you would lose (61.00) from holding Merck Company or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 17.39% |
| Values | Daily Returns |
Merck Company vs. GATX P 52
Performance |
| Timeline |
| Merck Company |
| GATX P 52 |
Merck and 361448AU7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 361448AU7
The main advantage of trading using opposite Merck and 361448AU7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 361448AU7 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 361448AU7 will offset losses from the drop in 361448AU7's long position.| Merck vs. Emergent Biosolutions | Merck vs. Bausch Health Companies | Merck vs. Neurocrine Biosciences | Merck vs. Teva Pharma Industries |
| 361448AU7 vs. Kura Sushi USA | 361448AU7 vs. ServiceNow | 361448AU7 vs. Cracker Barrel Old | 361448AU7 vs. The Wendys 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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