Correlation Between Merck and 456837AQ6
Specify exactly 2 symbols:
By analyzing existing cross correlation between Merck Company and ING GROEP NV, you can compare the effects of market volatilities on Merck and 456837AQ6 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 456837AQ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and 456837AQ6.
Diversification Opportunities for Merck and 456837AQ6
Good diversification
The 3 months correlation between Merck and 456837AQ6 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and ING GROEP NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ING GROEP NV 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 456837AQ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ING GROEP NV has no effect on the direction of Merck i.e., Merck and 456837AQ6 go up and down completely randomly.
Pair Corralation between Merck and 456837AQ6
Considering the 90-day investment horizon Merck Company is expected to under-perform the 456837AQ6. In addition to that, Merck is 3.56 times more volatile than ING GROEP NV. It trades about -0.06 of its total potential returns per unit of risk. ING GROEP NV is currently generating about -0.01 per unit of volatility. If you would invest 9,592 in ING GROEP NV on November 3, 2024 and sell it today you would lose (76.00) from holding ING GROEP NV or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.1% |
| Values | Daily Returns |
Merck Company vs. ING GROEP NV
Performance |
| Timeline |
| Merck Company |
| ING GROEP NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Merck and 456837AQ6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and 456837AQ6
The main advantage of trading using opposite Merck and 456837AQ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck position performs unexpectedly, 456837AQ6 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 456837AQ6 will offset losses from the drop in 456837AQ6's long position.The idea behind Merck Company and ING GROEP NV pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 456837AQ6 vs. Artisan Partners Asset | 456837AQ6 vs. Royalty Management Holding | 456837AQ6 vs. Bank of New | 456837AQ6 vs. TPG Inc |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |